[Federal Register Volume 87, Number 90 (Tuesday, May 10, 2022)]
[Proposed Rules]
[Pages 27954-27956]
[FR Doc No: 2022-09683]

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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Proposed
Rules

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2022-0510; Project Identifier MCAI-2022-00158-R]
RIN 2120-AA64

Airworthiness Directives; Airbus Helicopters Deutschland GmbH
(AHD) Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain Airbus Helicopters Deutschland GmbH (AHD) Model EC135P1,
EC135P2, EC135P2+, EC135P3, EC135T1, EC135T2, EC135T2+, and EC135T3
helicopters. This proposed AD was prompted by reports of the air
conditioning system (ACS) malfunctioning. This proposed AD would
require deactivating the ACS and prohibit installing the affected
parts, as specified in a European Union Aviation Safety Agency (EASA)
AD, which is proposed for incorporation by reference (IBR). The FAA is
proposing this AD to address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by June 24,
2022.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For EASA material that is proposed for IBR in this NPRM, contact
EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221
8999 000; email [email protected]; internet www.easa.europa.eu. You
may find the EASA material on the EASA website at https://ad.easa.europa.eu. For Airbus Helicopters service information
identified in this NPRM, contact Airbus Helicopters, 2701 North Forum
Drive, Grand Prairie, TX 75052; telephone<PHONE_NUMBER> or (800) 232-
0323; fax<PHONE_NUMBER>; or at https://www.airbus.com/helicopters/services/technical-support.html. You may view this material at the FAA,
Office of the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy.,
Room 6N-321, Fort Worth, TX 76177. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>. The EASA material is
also available at https://www.regulations.gov by searching for and
locating Docket No. FAA-2022-0510.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2022-0510; or in person at
Docket Operations between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket contains this NPRM, the EASA AD,
any comments received, and other information. The street address for
Docket Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Stephanie Sunderbruch, Aerospace
Engineer, Safety Risk Management Section, Systems Policy Branch, Policy
& Innovation Division, FAA, 10101 Hillwood Pkwy., Fort Worth, TX 76177;
telephone<PHONE_NUMBER>; email [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2022-0510; Project Identifier
MCAI-2022-00158-R'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
this proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this NPRM.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this NPRM. Submissions containing CBI should be sent to
Stephanie Sunderbruch, Aerospace Engineer, Safety Risk Management
Section, Systems Policy Branch, Policy & Innovation Division, FAA,
10101 Hillwood Pkwy., Fort Worth, TX 76177; telephone<PHONE_NUMBER>;
email [email protected]. Any commentary that the FAA
receives that is not specifically designated as CBI will be placed in
the public docket for this rulemaking.

Background

    EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2022-0023, dated February 3, 2022
(EASA AD 2022-0023), to correct an unsafe condition for Airbus
Helicopters Deutschland GmbH (AHD) (formerly Eurocopter Deutschland
GmbH, Eurocopter Espa[ntilde]a S.A.) Model EC135P1, EC135P2, EC135P2+,
EC135P3, EC135T1, EC135T2,

EC135T2+, EC135T3, EC635T2+, EC635P2+, EC635P3, EC635T1, and EC635T3
helicopters, all variants, serial numbers (S/N) from 0008 to 0869
inclusive, except S/N 0831 and S/N 0864.
    This proposed AD was prompted by reports of the ACS malfunctioning;
investigation into the malfunction has identified that certain ACS soft
start units are the root cause. The FAA is proposing this AD to address
malfunctioning ACSs. The unsafe condition, if not addressed, could
result in an overvoltage of the ACS, resulting in overheating of the
surrounding area, failure of the helicopter electrical system connected
to the ACS, and a subsequent loss of electrical power which could
result in increased pilot workload and reduced helicopter control. See
EASA AD 2022-0023 for additional background information.

Related Service Information Under 1 CFR Part 51

    EASA AD 2022-0023 requires deactivating the ACS soft start unit
part number (P/N) ES59185-2 on helicopters with a compressor/condenser
pallet P/N 135-0553-1 or P/N 135-0566-2 installed. EASA AD 2022-0023
also prohibits installing soft start unit P/N ES59185-2 or a
compressor/condenser pallet P/N 135-0553-1 or P/N 135-0566-2 on any
helicopter.
    This material is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section.

Other Related Service Information

    The FAA reviewed Airbus Helicopters Alert Service Bulletin ASB
EC135-21A-024, Revision 0, dated February 2, 2022. This service
information specifies procedures for deactivating the soft part unit of
the compressor/condenser pallet and specifies that compressor/condenser
pallet P/N 135-0553-1 or 135-0566-2 with soft start unit P/N ES59185-2
installed must not be installed on any helicopter.

FAA's Determination

    These helicopters have been approved by EASA and are approved for
operation in the United States. Pursuant to the FAA's bilateral
agreement with the European Union, EASA has notified the FAA about the
unsafe condition described in its AD. The FAA is proposing this AD
after evaluating all known relevant information and determining that
the unsafe condition described previously is likely to exist or develop
on other helicopters of the same type designs.

Proposed AD Requirements in This NPRM

    This proposed AD would require accomplishing the actions specified
in EASA AD 2022-0023, described previously, as incorporated by
reference, except for any differences identified as exceptions in the
regulatory text of this proposed AD and except as discussed under
``Differences Between this Proposed AD and the EASA AD.''

Explanation of Required Compliance Information

    In the FAA's ongoing efforts to improve the efficiency of the AD
process, the FAA developed a process to use some civil aviation
authority (CAA) ADs as the primary source of information for compliance
with requirements for corresponding FAA ADs. The FAA has been
coordinating this process with manufacturers and CAAs. As a result, the
FAA proposes to incorporate EASA AD 2022-0023 by reference in the FAA
final rule. This proposed AD would, therefore, require compliance with
EASA AD 2022-0023 in its entirety through that incorporation, except
for any differences identified as exceptions in the regulatory text of
this proposed AD. Using common terms that are the same as the heading
of a particular section in EASA AD 2022-0023 does not mean that
operators need comply only with that section. For example, where the AD
requirement refers to ``all required actions and compliance times,''
compliance with this AD requirement is not limited to the section
titled ``Required Action(s) and Compliance Time(s)'' in EASA AD 2022-
0023. Service information referenced in EASA AD 2022-0023 for
compliance will be available at https://www.regulations.gov by
searching for and locating Docket No. FAA-2022-0510 after the FAA final
rule is published.

Differences Between This Proposed AD and the EASA AD

    EASA 2022-0023 applies to Model EC635P2+, EC635P3, EC635T1,
EC635T2+, and EC635T3 helicopters, whereas this proposed AD would not
because these models are not FAA type-certificated and are not included
on the U.S. type certificate data sheet except where the U.S. type
certificate data sheet explains that the Model EC635T2+ helicopter
having serial number 0858 was converted from Model EC635T2+ to Model
EC135T2+.

Interim Action

    The FAA considers this proposed AD would be an interim action. The
design approval holder is currently developing a modification that will
address the unsafe condition identified in this AD. Once this
modification is developed, approved, and available, the FAA might
consider additional rulemaking.

Costs of Compliance

    The FAA estimates that this AD, if adopted as proposed, would
affect 341 helicopters of U.S. Registry. Labor rates are estimated at
$85 per work-hour. Based on these numbers, the FAA estimates the
following costs to comply with this proposed AD.
    Deactivating the ACS would take about 1 work-hour, for an estimated
cost of $85 per helicopter and up to $28,985 for the U.S. fleet.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. 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.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority because it addresses an unsafe condition that is likely to
exist or develop on products identified in this rulemaking action.

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive:

Airbus Helicopters Deutschland GmbH (AHD): Docket No. FAA-2022-0510;
Project Identifier MCAI-2022-00158-R.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) by June 24, 2022.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Airbus Helicopters Deutschland GmbH (AHD)
Model EC135P1, EC135P2, EC135P2+, EC135P3, EC135T1, EC135T2,
EC135T2+, and EC135T3 helicopters, serial numbers (S/N) from 0008 to
0869 inclusive, except S/N 0831 and S/N 0864, certificated in any
category.

(d) Subject

    Joint Aircraft Service Component (JASC) Code 2100, Air
Conditioning System.

(e) Unsafe Condition

    This AD was prompted by reports of the air conditioning system
(ACS) malfunctioning. The FAA is issuing this AD to prevent possible
overheating of the ACS. The unsafe condition, if not addressed,
could result in an overvoltage of the ACS, resulting in overheating
of the surrounding area, failure of the helicopter electrical system
connected to the ACS, and a subsequent loss of electrical power
which could result in increased pilot workload and reduced
helicopter control.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Requirements

    Except as specified in paragraphs (h) and (i) of this AD: Comply
with all required actions and compliance times specified in, and in
accordance with, European Union Aviation Safety Agency (EASA) AD
2022-0023, dated February 3, 2022 (EASA AD 2022-0023).

(h) Exceptions to EASA AD 2022-0023

    (1) Where EASA AD 2022-0023 requires compliance in terms of
flight hours, this AD requires using hours time-in-service.
    (2) Where EASA AD 2022-0023 refers to its effective date, this
AD requires using the effective date of this AD.
    (3) This AD does not mandate compliance with the ``Remarks''
section of EASA AD 2022-0023.

(i) No Reporting Requirement

    Although the service information referenced in EASA AD 2022-0023
specifies to submit certain information to the manufacturer, this AD
does not include that requirement.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, International Validation Branch, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the manager of the International Validation Branch, send
it to the attention of the person identified in paragraph (k)(2) of
this AD. Information may be emailed to: [email protected].
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    (1) For EASA AD 2022-0023, contact EASA, Konrad-Adenauer-Ufer 3,
50668 Cologne, Germany; telephone +49 221 8999 000; email
[email protected]; internet www.easa.europa.eu. You may find the
EASA material on the EASA website at https://ad.easa.europa.eu. You
may view this material at the FAA, Office of the Regional Counsel,
Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort Worth, TX
76177. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>. This material may be found in the AD
docket at https://www.regulations.gov by searching for and locating
Docket No. FAA-2022-0510.
    (2) For more information about this AD, contact Stephanie
Sunderbruch, Aerospace Engineer, Safety Risk Management Section,
Systems Policy Branch, Policy & Innovation Division, FAA, 10101
Hillwood Pkwy., Fort Worth, TX 76177; telephone<PHONE_NUMBER>;
email [email protected].

    Issued on April 30, 2022.
Gaetano A. Sciortino,
Deputy Director for Strategic Initiatives, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2022-09683 Filed 5-9-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 133 (Thursday, July 11, 2019)]
[Notices]
[Pages 33075-33077]
[FR Doc No: 2019-14765]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2014-D-0331]

Live Case Presentations During Investigational Device Exemption
Clinical Trials; Guidance for Institutional Review Boards, Industry,
Clinical Investigators, and Food and Drug Administration Staff;
Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of availability.

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SUMMARY: The Food and Drug Administration (FDA or Agency) is announcing
the availability of a final guidance entitled ``Live Case Presentations
During Investigational Device Exemption (IDE) Clinical Trials.'' The
purpose of this guidance is to provide institutional review boards
(IRBs), industry, clinical investigators, and FDA staff with factors to
consider when evaluating the appropriateness of a live case
presentation within a clinical investigation conducted under an
investigational device exemption (IDE) application. This document
provides guidance on important information about a live case
presentation that should be provided as part of an original IDE
application or a supplement to an IDE application when requesting
inclusion of a live case presentation during a clinical investigation.

DATES: The announcement of the guidance is published in the Federal
Register on July 11, 2019.

ADDRESSES: You may submit either electronic or written comments on
Agency guidances at any time as follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to https://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on https://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand Delivery/Courier (for written/paper
submissions): Dockets

Management Staff (HFA-305), Food and Drug Administration, 5630 Fishers
Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2014-D-0331 for ``Live Case Presentations During Investigational
Device Exemption (IDE) Clinical Trials.'' Received comments will be
placed in the docket and, except for those submitted as ``Confidential
Submissions,'' publicly viewable at https://www.regulations.gov or at
the Dockets Management Staff between 9 a.m. and 4 p.m., Monday through
Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.
    You may submit comments on any guidance at any time (see 21 CFR
10.115(g)(5)).
    An electronic copy of the guidance document is available for
download from the internet. See the SUPPLEMENTARY INFORMATION section
for information on electronic access to the guidance. Submit written
requests for a single hard copy of the guidance document entitled
``Live Case Presentations During Investigational Device Exemption (IDE)
Clinical Trials'' to the Office of Policy, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 5431, Silver Spring, MD 20993-0002. Send one self-
addressed adhesive label to assist that office in processing your
request.

FOR FURTHER INFORMATION CONTACT: John Doucet, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 1535, Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    A live case presentation is a live or pre-recorded broadcast of a
surgical or percutaneous procedure, typically narrated by the operator
(or a discussant other than the operator), with or without expert panel
and/or audience interaction. Our expectation is that very few
investigations under an IDE will include live case presentations.
However, by increasing awareness of the study for healthcare
professionals and eligible subjects, live case presentations may lead
to new therapies being made available sooner.
    This guidance is intended, in part, to improve the quality of
information about live case presentations submitted by sponsors as part
of an investigational plan in an original IDE application or supplement
to an IDE application, or to the IRB for non-significant risk studies,
and to ensure consistency in the review of those submissions. It
describes measures we recommend sponsors take to ensure adequate human
subject protection, followup, reporting, and data analysis for live
case presentations.
    FDA considered comments received on the draft guidance that
appeared in the Federal Register of April 17, 2014 (79 FR 21776). FDA
revised the guidance as appropriate in response to the comments.

II. Significance of Guidance

    This guidance is being issued consistent with FDA's good guidance
practices regulation (21 CFR 10.115). The guidance represents the
current thinking of FDA on live case presentations during IDE clinical
trials. It does not establish any rights for any person and is not
binding on FDA or the public. You can use an alternative approach if it
satisfies the requirements of the applicable statutes and regulations.
This guidance is not subject to Executive Order 12866.

III. Electronic Access

    Persons interested in obtaining a copy of the guidance may do so by
downloading an electronic copy from the internet. A search capability
for all Center for Devices and Radiological Health guidance documents
is available at https://www.fda.gov/medical-devices/device-advice-comprehensive-regulatory-assistance/guidance-documents-medical-devices-and-radiation-emitting-products. This guidance document is also
available at https://www.regulations.gov. Persons unable to download an
electronic copy of ``Live Case Presentations During Investigational
Device Exemption (IDE) Clinical Trials'' may send an email request to
<EMAIL_ADDRESS>to receive an electronic copy of the
document. Please use the document number 1736 to identify the guidance
you are requesting.

IV. Paperwork Reduction Act of 1995

    This guidance refers to previously approved collections of
information. These collections of information are subject to review by
the Office of Management and Budget (OMB) under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520). The collections of information in
the following FDA regulations have been approved by OMB as listed in
the following table:

------------------------------------------------------------------------
                                                            OMB control
          21 CFR part                     Topic                 No.
------------------------------------------------------------------------
812............................  Investigational Device        0910-0078
                                  Exemption.
50, 56.........................  Protection of Human           0910-0755
                                  Subjects: Informed
                                  Consent; Institutional
                                  Review Boards.
56.............................  Institutional Review          0910-0130
                                  Boards.
------------------------------------------------------------------------

    Dated: July 8, 2019.
Lowell J. Schiller,
Principal Associate Commissioner for Policy.
[FR Doc. 2019-14765 Filed 7-10-19; 8:45 am]
 BILLING CODE 4164-01-P


                          SUPPORTING STATEMENTPART A

                 PRODUCTION OUTLOOK REPORTS FOR UN-REGISTERED
                           RENEWABLE FUELS PRODUCERS

A.	JUSTIFICATION

1.	Identification of the Information Collection

	a.	Title:   Production Outlook Reports for Un-Registered Renewable Fuels Producers; EPA ICR No.  2409.02; OMB Control Number 2060-0640

	b. 	Short characterization:

	 With this information collection request (ICR), we are seeking permission to accept production outlook reports from domestic or foreign renewable fuel producers who are not currently regulated parties under the RFS2 program.  The respondents for this ICR are not regulated parties under the RFS2 program and are therefore, not required to register or report under the RFS2 regulations.  Submission of production outlook information to EPA under this ICR will be on a voluntary basis.

      The information that respondents provide will allow EPA to more accurately project cellulosic biofuel volumes for the following calendar year, and these volume projections will form the basis of the percentage standards EPA sets under the RFS2 program.  Without information from these respondents, EPA's volume projections are more likely to fall below actual projection volumes.  Under such circumstances, actual supply for cellulosic biofuel will exceed the demand created by the standards EPA sets, and the value of cellulosic biofuel Renewable Identification Numbers (RINs) will fall.  RINs are marketable credits that correspond to a given volume of renewable fuel.  Since RIN market price directly affects the economic viability of cellulosic biofuel production, low RIN prices could present economic difficulties to producers.  Thus, it is in the interests of these respondents to provide this information to EPA, as doing so could ensure that the market price of RINs appropriately reflects the value of their cellulosic biofuel.  This information also serves a more general program purpose, because it will assist EPA in setting the annual RFS2 standards more accurately for biomass-based diesel, advanced biofuel, and total renewable fuel.  Compiling this information may also assist respondents with their planning and compliance activities.  We believe that many parties would wish to submit this information in order to receive better assistance in understanding and complying with the RFS2 regulations.

      We anticipate that approximately 2 parties will elect to participate in this information collection. The format for submitting the production outlook information to EPA would follow the "RFS2 Production Outlook Form, Report Form ID: RFS0900, EPA external number 5900-283." Reporting by regulated parties is covered under the RFS2 ICR, OMB Control No. 2060-0640. A copy of the current RFS0900 form and its instructions are available at:

         * Instructions:  www.epa.gov/otaq/regs/fuels/rfs0900.pdf
         * Form:  www.epa.gov/otaq/regs/fuels/rfs0900.xls

.

2.  Need For, and Use of, the Collection

      a. Authority for the Collection

	Sections 114 and 208 of the Clean Air Act (CAA), 42 U.S.C. §§ 7414 and 7542, authorize EPA to require recordkeeping and reporting regarding enforcement of the provisions of Title II of the CAA.   This voluntary collection of information is related to the RFS2 program.

	b. 	Practical Utility/Uses of the Data

	As discussed above in "Short Characterization," collection of this information will assist EPA in setting accurate annual standards under the RFS2 rule and will assist respondents with their planning and compliance activities.

3.  Non-duplication, Consultation, and other Collection Criteria

	a. 	Non-duplication

	Efforts have been made to eliminate duplication in this information collection.

      b. 	Public Notice

	EPA sought comment on reporting requirements via notice February 6, 2014 (78 FR 02571).  EPA received no comments in the docket after the 60 day comment period.

	c. 	Consultations

	We have drawn upon our experience with RFS2, and with similar fuels regulations to develop the estimates in this supporting statement.   DCFUEL database was consulted for the number of reports collected over the three year collection period for this ICR. Upon review, only 2 distinct companies have submitted either a RFS0900 or RFS0901 report under the ID number `9999. EPA is concluding that the estimates from the last reporting collection were overstated.  To better reflect the activity for report collection, the number of reports will be changed to 2 per year.  EPA has made an asserted effort to seek industry comment for this ICR.  EPA contacted Lindsay Fitzgerald, Director of Regulatory Affairs at the National Biodiesel Board and
Can be contacted on<PHONE_NUMBER> and by e-mail<EMAIL_ADDRESS>who believed that the cost to the industry was reasonable and fair.

	d. 	Effects of Less Frequent Data Collection

	This is a voluntary information collection.  If EPA could not collect this information, then both the respondent and the Agency would be disadvantaged.  EPA would base its RFS2 standard setting on incomplete information, and this in turn would have a negative effect upon the respondents.  Collecting this information would allow EPA to assist the respondents in compliance, as the respondents would be subject to the RFS2 regulations in the future.

	e. 	General Guidelines

	This rule does exceed the OMB guidelines. EPA requests an exception to the OMB guidelines that agencies may only require records to be maintained for no more than three years. Records can be kept either electronically or on paper. EPA needs to make sure regulated parties keep records long enough to be evaluated for compliance during this time period.  Section 40 CFR Part 80.1454(l) requires record retention for five years from the date the records were created.

	f. 	Confidentiality

	We will inform respondents that they may assert claims of business confidentiality (CBI) for information they submit. Any information claimed as confidential will be treated in accordance with 40 CFR Part 2 and established Agency procedures.  Information that is received without a claim of confidentiality may be made available to the public without further notice to the submitter under 40 CFR § 2.203.

      g. 	Sensitive Information

	This information collection does not require submission of any sensitive information.

4.	The Respondents and the Information Requested

	a.	Respondents/with NAICS and SIC Codes

      The respondents to this information collection are renewable fuel producers who are expected to fall under the general category of petroleum refineries (324110/2911), ethyl alcohol manufacturers (325193/2869), and/or other basic organic chemical manufacturing (325199/2869).  We expect that 2 parties per year will elect to participate in this information collection.  (Since this information collection is voluntary in nature, the actual number is determined by the respondents themselves.)

	b.	Information Requested

	The information requested includes the information collected on the RFS0900 form.  Parties may submit some, or all, of the information and submission of the information is voluntary. Parties do not have to use the form, but we plan to provide it as a convenience for those who wish to use it.

5.  	The Information Collected, Agency Activities, Collection Methodology, and Information Management

	a.	Agency Activities

      The Agency may contact respondents if there is a question about their submission.  We already perform this activity for required reports submitted under the RFS2 program and do not anticipate that this will add any significant burden.

	b. 	Collection and Methodology and Management

	We anticipate accepting this information in various formats, including electronically.  Information claimed as CBI will be stored in appropriately controlled areas.

	c.	Small Entity Flexibility

	This collection will not adversely affect small entities.  This collection is a voluntary collection and there will be no adverse consequences if a party elects not to submit the information.

	d.	Collection Schedule

	This would be a voluntary collection and, as result, this collection is not subject to any set collection schedule.  Respondents may submit all, or some, of the information on the production outlook report at will.

6.	ESTIMATING THE BURDEN AND COST OF THE COLLECTION

 	(a) ESTIMATING THE RESPONDENT BURDEN

We drew upon experience implementing similar regulations among the same entities to develop estimates of the burden associated with this collection.

      b.	Estimating the Respondent Burden and Cost

	Three labor categories are involved:  managerial (includes legal and professional review), technical, and clerical. The estimates used the Bureau of Labor Statistics figures from "National Industry-Specific Occupational Employment & Wage Estimate "Petroleum and Coal Products Manufacturing" (May 2011), with a 3% annual inflation factor applied to bring the values to the present.  Using this method, the following wages and benefits apply by category:

Wages and Benefits

Managerial    		$67.44   per hour
Technical		$65.56   per hour
Clerical		$22.17   per hour
Doubling for company overhead beyond wages and benefits, and for convenience, rounding up to the dollar, gives the following rates for this ICR:

Total Employer Cost

Managerial		$135.00 per hour
Technical		$132.00 per hour
Clerical		 $ 45.00 per hour

	It is assumed that for each hour of activity the mix will be about 0.1 hour managerial, 0.7 hour technical, and 0.2 hour clerical.  This gives an average labor cost of $115 per hour rounded up, which will be used in this ICR.  The Agency estimates that it will take 12 hours to complete 1 report and estimates no more than 2 notifications with an annual burden of 24 burden hours per year and for three years 72 burden hours. This collection includes no annualized capital or operation and maintenance cost.

                             Number of Respondents
                       Number of Reports per Respondent
                          Annual Hours per Response*

                               Cost per Response
                                  @ $115/hr.
                               Total Hours/Year
                                  Total Cost
                              In Dollars/Year ($)
                                       2
                                       1
                                      12
                                     $1380
                                      24
                                    $2,760
      * We believe that each report would take up to 12 hours to complete at $115/hour to determine the annual burden covered by this ICR.

	c.  	Estimating the Agency Burden and Cost

 	This is a voluntary information collection.  This activity will present no significant, quantifiable burden to the Agency.  We have drawn upon our experiences with the Renewable Fuel program and estimate no more than 2 notifications with an annual burden of 4 burden hours per year and for three years, 12 burden hours.  We have one full-time GS-13 technical worker working two hours per response.

 	The Agency burden consists of a GS-13 technical worker costs at $89.94 an hour including overhead, for an Agency burden of $89.94 per response.  The agency's annual burden cost for this collection is $360 rounded to the nearest dollar.

       These estimates are derived from "OPM Salary Table 2014-DCB," effective January 2014.  This table may be found at http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2014/DCB.pdf.  The extreme of step 10 was assumed for all categories.  All values were multiplied by 1.6 (which is a common factor utilized in ICRs to account for overhead costs). We rounded the resulting dollar value to the nearest tenth.

	d.	Estimating the Respondent Universe

	We were able to estimate the number of regulated entities drawing upon experience regulating the same or similar entities and the number of reports submitted in DCFUELS during the last collection period. Only 2 distinct companies have submitted either a RFS0900 or RFS0901 report under the ID number `9999. EPA is concluding that the estimates from the last reporting collection were overstated and assuming for this collection 2 reports per year.

	e.	Bottom Line Burden Hours and Costs

	From "Estimating the Respondent Burden and Cost," we estimate the following totals:

TOTAL NO. OF RESPONDENTS:    	2
TOTAL NO. OF RESPONSES:		2
TOTAL ANNUAL HOURS:    	    	24
TOTAL ANNUAL COST:  			$ 2,760

	f.	Reason for Change in Burden

	There is an increase of hours per response from 4 to 12, an increase of 8 in the total estimated respondent burden compared with the ICR currently approved by OMB. The respondent universe decreased due to the comparison of reported number of submissions in the DCFUEL database. The actual number is determined by the respondents themselves choosing to participate in voluntary reporting. The number of respondents decreased by 33 per year lowering the total number of reports collected.  These decreases have lowered cost to the industry by $7,180 per year even though the cost to report per response has risen due to better numbers used to calculate the industry burden and to account for inflation.

	g.	Burden Statement

	The annual public reporting and recordkeeping burden for this collection of information is estimated to be 12 hours per response.  Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency.  This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information.  An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.  The OMB control numbers for EPA's regulations are listed in 40 CFR part 9 and 48 CFR chapter 15.

 	To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID number EPA-HQ-OAR-2005-0161, which is available for online viewing at www.regulations.gov, or in person viewing at the Air Docket in the EPA Docket Center in Washington, DC (EPA/DC).  The docket is located in the EPA West Building, 1301 Constitution Avenue, NW, Room 3334, and is open from 8:30 a.m. to 4:30 p.m., Eastern Standard Time, Monday through Friday, excluding legal holidays.  The telephone number for the Reading Room is<PHONE_NUMBER>, and the telephone number for the Air Docket is<PHONE_NUMBER>.
 	You may use www.regulations.gov to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically.  When in the system, select "search," then key in the Docket ID Number EPA-HQ-OAR-2005-0161.  Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA.  Please include the EPA Docket ID Number EPA-HQ-OAR-2005-0161 and OMB Control Number 2060-0640 in any correspondence.


[Federal Register Volume 85, Number 189 (Tuesday, September 29, 2020)]
[Notices]
[Pages 61039-61043]
[FR Doc No: 2020-21406]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89970; File No. SR-CboeEDGX-2020-045]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Fee Schedule

September 23, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 11, 2020, Cboe EDGX Exchange, Inc. (the ``Exchange''
or ``EDGX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to amend the fee schedule. The text of the proposed rule
change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its fee schedule applicable to its
equities trading platform (``EDGX Equities'') by: (1) Amending certain
standard rates; (2) adding a new fee code; (3) updating the Non-
Displayed Add Volume Tiers; and (4) including a Remove Volume Tier.\3\
---------------------------------------------------------------------------

    \3\ The Exchange initially filed the proposed fee changes on
September 1, 2020 (SR-CboeEDGX-2020-044). On September 11, 2020, the
Exchange withdrew that filing and submitted this proposal.
---------------------------------------------------------------------------

    The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of 13 registered equities exchanges, as well as a
number of alternative trading systems and other off-exchange venues
that do not have similar self-regulatory responsibilities under the
Exchange Act, to which market participants may direct their order flow.
Based on publicly available information,\4\ no single registered
equities exchange has more than 18% of the market share. Thus, in such
a low-concentrated and highly competitive market, no single equities
exchange possesses significant pricing power in the execution of order
flow. The Exchange in particular operates a ``Maker-Taker'' model
whereby it pays credits to members that provide liquidity and assesses
fees to those that remove liquidity. The Exchange's fee schedule sets
forth the standard rebates and rates applied per share for orders that
provide and remove liquidity, respectively. Currently, for orders
priced at or above $1.00, the Exchange provides a standard rebate of
$0.0017 per share for orders that add liquidity and assesses a fee of
$0.0027 per share for orders that remove liquidity. For orders priced
below $1.00, the Exchange a standard rebate of $0.00003 per share for
orders that add liquidity and assesses a fee of 0.30% of Dollar Value
for orders that remove liquidity. Additionally, in response to the
competitive environment, the Exchange also offers tiered pricing which
provides Members opportunities to qualify for higher rebates or reduced
fees where certain volume criteria and thresholds are met. Tiered
pricing provides an

incremental incentive for Members to strive for higher tier levels,
which provides increasingly higher benefits or discounts for satisfying
increasingly more stringent criteria.
---------------------------------------------------------------------------

    \4\ See Cboe Global Markets, U.S. Equities Market Volume
Summary, Month-to-Date (August 24, 2020), available at https://markets.cboe.com/us/equities/market_statistics/.
---------------------------------------------------------------------------

Proposed Amendment to Standard Rebate for Securities Under $1.00
    As stated above, the Exchange currently offers a standard rebate of
$0.00003 for orders in securities below $1.00 that add liquidity. The
Exchange proposes to amend this standard rate by providing a standard
rebate of $0.00009 for orders that add liquidity in securities priced
under $1.00 and reflects this change in the Fee Codes and Associated
Fee where applicable (i.e., corresponding to fee codes 3, 4, B, V, and
Y). The Exchange notes that the proposed standard rate is in line with,
yet also competitive with, rates assessed by other equities exchanges
on orders in securities priced below $1.00.\5\ The Exchange notes, too,
that its affiliated exchange, Cboe BZX Exchange, Inc. (``BZX
Equities''), is simultaneously submitting a fee change to amend its
same current standard rate for orders that add liquidity in securities
under $1.00 in the same manner.
---------------------------------------------------------------------------

    \5\ See NYSE Price List 2020, ``Transactions in stocks with a
per share stock price less than $1.00'', which either does not
assess a charge or assesses a charge of 0.3% for various orders in
securities priced below $1.00; and Nasdaq Pricing, ``Rebates and
Fees, Shares Executed Below $1.00'', which assesses no change for
orders to add liquidity in securities priced below $1.00 and
assesses a charge of 0.30% of total dollar volume for orders to
remove liquidity in securities priced below $1.00.
---------------------------------------------------------------------------

Proposed New Fee Code
    The Exchange proposed to add a new type of fee code in the Fee Code
and Associated Fees table in the Fee Schedule. Specifically, the
proposed fee code ``ZM'' is appended to Retail \6\ Day or Regular Hours
Only (``RHO'') \7\ Orders that remove liquidity on arrival and are
assessed no fee. Currently, such orders in securities priced at or
above $1.00 are assessed the standard fee of $0.0027 to remove
liquidity and such orders in securities priced below $1.00 are assessed
the standard fee of 0.30% of Dollar Value to remove liquidity.
---------------------------------------------------------------------------

    \6\ See EDGX Rule 11.21(a)(1). A ``Retail Order'' is an agency
or riskless principal order that meets the criteria of FINRA Rule
5320.03 that originates from a natural person and is submitted to
the Exchange by a Retail Member Organization, provided that no
change is made to the terms of the order with respect to price or
side of market and the order does not originate from a trading
algorithm or any other computerized methodology. See EDGX Rule
11.21(a)(2). Retail Orders are submitted by a ``Retail Member
Organization'' or ``RMO'', which is a member (or a division thereof)
that has been approved by the Exchange to submit such orders.
    \7\ ``Day'' is an instruction the User may attach to an order
stating that an order to buy or sell which, if not executed, expires
at the end of Regular Trading Hours. Any Day Order entered into the
System before the opening for business on the Exchange, or after the
closing of Regular Trading Hours, will be rejected. See EDGX Rule
11.6(q)(2). ``Regular Hours Only (``RHO'') is an instruction a User
may attach to an order designating it for execution only during
Regular Trading Hours, which includes the Opening Process and Re-
Opening Process following a halt suspension or pause. See EDGX Rule
11.6(q)(6).
---------------------------------------------------------------------------

Proposed Updates to the Non-Displayed Add Volume Tiers
    Currently, the Exchange provides for three Non-Displayed Add Volume
Tiers under footnote 1 of the Fee Schedule. These tiers offer enhanced
rebates on Members' orders yielding fee codes ``DM'' \8\, ``HA'' \9\,
``MM'' \10\ and ``RP'' \11\ where a Member reaches certain required
volume-based criteria offered in each tier. Specifically, the Non-
Displayed Add Volume Tiers are as follows:
---------------------------------------------------------------------------

    \8\ Appended to orders that add liquidity using MidPoint
Discretionary order within discretionary range and are provided a
rebate of $0.00100.
    \9\ Appended to non-displayed orders that add liquidity and are
provided a rebate of $0.00100.
    \10\ Appended to non-displayed orders that add liquidity using
Mid-Point Peg and are provided a rebate of $0.00100.
    \11\ Appended to non-displayed orders that add liquidity using
Supplemental Peg and are provided a rebate of $0.00100.
---------------------------------------------------------------------------

     Tier 1 provides an enhanced rebate of $0.0015 for a
Member's qualifying orders (i.e., yielding fee codes DM, HA, MM and RP)
where a Member adds an ADV \12\ greater than or equal to 1,000,000
shares as Non-Displayed orders that yield fee codes DM, HA, HI, MM or
RP.
---------------------------------------------------------------------------

    \12\ ``ADV'' means average daily volume calculated as the number
of shares added to, removed from, or routed by, the Exchange, or any
combination or subset thereof, per day. ADV is calculated on a
monthly basis.
---------------------------------------------------------------------------

     Tier 2 provides an enhanced rebate of $0.0022 for a
Member's qualifying orders where a Member adds an ADV greater than or
equal to 2,500,000 shares as Non-Displayed orders that yield fee codes
DM, HA, HI, MM or RP.
     Tier 3 provides an enhanced rebate of $0.0025 for a
Member's qualifying orders where a Member adds an ADV greater than or
equal to 7,000,000 shares as Non-Displayed orders that yield fee codes
DM, HA, HI, MM or RP.
    The Exchange proposes to update the criteria in each of the Non-
Displayed Add Volume Tiers as follows below. The Exchange notes that
the enhanced rebates currently provided in each tier remain the same.
     To meet the proposed criteria in Tier 1, a Member must
have an ADAV greater than or equal to 0.01% of TCV for Non-Displayed
orders that yield fee codes DM, HA, HI, MM or RP.
     To meet the proposed criteria in Tier 2, a Member must
have an ADAV greater than or equal to 0.02% of TCV for Non-Displayed
orders that yield fee codes DM, HA, HI, MM or RP.
     To meet the proposed criteria in Tier 3, a Member must
have an ADAV greater than or equal to 0.05% of TCV for Non-Displayed
orders that yield fee codes DM, HA, HI, MM or RP.
    The Exchange notes that the proposed rule change also updates the
language in each Tier to state ``where a Member has an ADAV'', which
essentially states the same requirement as ``adds an ADV'', but is more
appropriately aligned with the defined terms in the Fee Schedule.\13\
Further, the Exchange does not believe that amending the current volume
over a baseline number of shares criteria to, instead, be a percentage
volume over TCV poses any significant increase or decrease in
difficulty in reaching the Non-Displayed Add Volume Tiers, but only
changes the format of the Non-Displayed Add Volume Tier criteria to be
consistent with the format of the criteria in the other volume-based
tiers offered under the Fee Schedule.\14\
---------------------------------------------------------------------------

    \13\ See supra note 12; and see infra note 20.
    \14\ See EDGX Equities Fee Schedule, ``Add Volume Tiers'',
``Tape B Volume Tier'', and ``Retail Volume Tier''.
---------------------------------------------------------------------------

Proposed Remove Volume Tier
    The Exchange proposes to add a new Remove Volume Tier under
footnote 1 of the Fee Schedule.\15\ The proposed Remove Volume Tier
offers a reduced remove fee of $0.0026 in securities at or above $1.00
and 0.28% of total dollar value for orders in securities below $1.00
\16\ for orders yielding fee code ``BB'' \17\, ``N'' \18\ and ``W''
\19\ where a Member has an ADAV \20\ greater than or equal to 0.25% TCV
\21\ with displayed orders that yield fee codes B, V or Y. The proposed
Remove Volume Tier is designed to incentivize Members to increase their
orders that add displayed

volume on the Exchange in order to receive a reduced fee on their
qualifying, liquidity removing orders.
---------------------------------------------------------------------------

    \15\ As a result of the new Remove Volume Tier, it also updates
the title of footnote 1 to ``Add/Remove Volume Tiers''.
    \16\ As a result, the Exchange proposes to update the statement
under General Notes in the Fee Schedule to state that ``unless
otherwise indicated, variable rates provided by tiers apply only to
executions in securities priced at or above $1.00.
    \17\ Appended to orders that remove liquidity from EDGX (Tape B)
and is assessed a standard fee of $0.00270.
    \18\ Appended to orders that remove liquidity from EDGX (Tape C)
and is assessed a standard fee of $0.00270.
    \19\ Appended to orders that remove liquidity from BZX (Tape A)
and is assessed a standard fee of $0.00270.
    \20\ ``ADAV'' means average daily added volume calculated as the
number of shares added per day. ADAV is calculated on a monthly
basis.
    \21\ ``TCV'' means total consolidated volume calculated as the
volume reported by all exchanges and trade reporting facilities to a
consolidated transaction reporting plan for the month for which the
fees apply.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\22\ in general, and
furthers the objectives of Section 6(b)(4),\23\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members, issuers and other persons
using its facilities. The Exchange operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. The proposed rule changes
reflect a competitive pricing structure designed to incentivize market
participants to direct their order flow to the Exchange, which the
Exchange believes would enhance market quality to the benefit of all
Members.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78f.
    \23\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Regarding the proposed change to the standard rates, the Exchange
believes that amending the standard rate for orders that add volume in
securities priced below $1.00 is reasonable because, as stated above,
in order to operate in the highly competitive equities markets, the
Exchange and its competing exchanges seek to offer similar pricing
structures, including assessing comparable standard fees for orders in
securities priced below $1.00. Thus, the Exchange believes the proposed
standard rate change is reasonable as it is generally aligned with and
competitive with the amounts assessed for the orders in securities
below $1.00 on other equities exchanges. The Exchange also believes
that amending this standard rate amount represents an equitable
allocation of fees and is not unfairly discriminatory because they will
continue to automatically apply to all Members' orders that add
liquidity in securities less than $1.00 uniformly.
    Regarding the proposed new fee code ZM appended to Retail Day/RHO
Orders that remove liquidity on arrival, the Exchange notes that the
competition for Retail Order flow is particularly intense, especially
as it relates to exchange versus off-exchange venues, as prominent
retail brokerages tend to route a majority of their limit orders to
off-exchange venues.\24\ Accordingly, competitive forces compel the
Exchange to use exchange transaction fees and credits, particularly as
they relate to competing for Retail Order flow, because market
participants can readily trade on competing venues if they deem pricing
levels at those other venues to be more favorable.
---------------------------------------------------------------------------

    \24\ See Securities Exchange Release No. 86375 (July 15, 2019),
84 FR 34960 (SR-CboeEDGX-2019-045).
---------------------------------------------------------------------------

    The Exchange believes that its proposed change to adopt fee code
ZM, which will assess no fee for Retail Day/RHO Orders that remove upon
arrival is reasonable, equitable and not unfairly discriminatory.
Specifically, the Exchange believes the proposal is reasonable as
market participants will not be subject to a fee for the execution of
such orders. This is consistent with, and competitive with, fees
assessed for retail order flow on other equities exchanges, which
provide pricing incentives to retail orders in the form of lower fees
and/or higher rebates.\25\ The Exchange notes too that it currently
offers a rebate of $0.0032 per share for Retail Orders that add
liquidity (i.e., yielding fee code ``ZA'') as compared to the standard
rebate of $0.0017 for liquidity adding orders, as well as Retail Volume
Tiers which provide various enhanced rebates specifically for Members'
Retail Order flow. The Exchange believes that adopting no charge on
orders yielding fee code ZM is reasonable in that it is reasonably
designed to incentivize an increase in removing Retail Order flow.
Retail Orders are generally submitted in smaller sizes and tend to
attract Market-Makers, as smaller size orders are easier to hedge, and
Retail Order flow that removes liquidity additionally signals to
liquidity providers to increase their overall provision of liquidity in
the markets. Increased Market-Maker activity facilitates tighter
spreads and an increase in overall liquidity provider activity provides
for deeper, more robust levels of liquidity, both of which signal
additional corresponding increase in order flow from other market
participants, contributing towards a robust, well-balanced market
ecosystem. Indeed, increased overall order flow benefits all investors
by continuing to deepen the Exchange's liquidity pool, potentially
providing even greater execution incentives and opportunities, offering
additional flexibility for all investors to enjoy cost savings,
supporting the quality of price discovery, promoting market
transparency and improving investor protection. The Exchange notes
that, like all other fee codes, ZM and the accompanying free charge
will be automatically and uniformly applied to all Members' qualifying
orders. The Exchange additionally notes that while the proposed fee
code and assessment of no fee is applicable only to Retail Orders, the
Exchange does not believe this application is discriminatory as the
Exchange offers similar rebates or reduced rates to non-Retail Order
flow.\26\
---------------------------------------------------------------------------

    \25\ See Nasdaq Price List, Rebate to Add Displayed Designated
Retail Liquidity, which offer rebates of $0.00325 and $0.0033 for
Add Displayed Designated Retail Liquidity; and NYSE Price List,
``Fees and Credits Applicable to Executions in the Retail Liquidity
Program'', which offers various reduced fees, including the
assessment of no charges, for various types of retail order volume,
and ``Transaction Fees and Credits For Tape B and C Securities'',
which provides a rebate of $0.0030 per share specifically for retail
orders.
    \26\ See generally, EDGX Equities Fee Schedule, Fee Codes and
Associated Fees; see also ``Add Volume Tiers'' and ``Tape B Volume
Tier'', both of which provide various enhanced rebates for non-
Retail Order flow.
---------------------------------------------------------------------------

    The Exchange believes that the proposed Remove Volume Tier is
reasonable because it provides an additional opportunity through a new
tier for Members to receive a discounted rate by means of liquidity
adding orders and that the proposed changes to the Non-Displayed
Liquidity Tiers are reasonable because they merely update the format of
the tiers' criteria to be consistent with other volume-based tiers
currently offered by the Exchange, thus maintaining existing
opportunities for Members to receive a discounted rate by means of non-
displayed liquidity adding orders.\27\ The Exchange notes that relative
volume-based incentives and discounts have been widely adopted by
exchanges, including the Exchange, and are reasonable, equitable and
non-discriminatory because they are open to all members on an equal
basis and provide additional benefits or discounts that are reasonably
related to (i) the value to an exchange's market quality and (ii)
associated higher levels of market activity, such as higher levels of
liquidity provision and/or growth patterns. Additionally, as noted
above, the Exchange operates in highly competitive market. The Exchange
is only one of several equity venues to which market participants may
direct their order flow, and it represents a small percentage of the
overall market. It is also only one of several maker-taker exchanges.
Competing equity exchanges offer similar tiered pricing structures,
including schedules of rebates and fees that apply based upon members
achieving certain volume and/or growth thresholds, as well as assess
similar fees or rebates for similar types of orders, to that of the
Exchange. These competing pricing schedules, including those of the
Exchange's affiliated equities

exchanges,\28\ are presently comparable to those that the Exchange
provides, including the pricing of comparable criteria and reduced
fees.
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    \27\ See supra note 14.
    \28\ See EDGA Equities Fee Schedule, footnote 7, ``Add/Remove
Volume Tiers'', of which the Remove Volume Tiers offers an enhanced
rebate of $0.0022 or $0.0028 for reaching a certain threshold of ADV
over TCV; BYX Equities Fee Schedule, footnote 1, ``Add/Remove Volume
Tiers'', of which the Remove Volume Tiers offer enhanced rebates
between $0.0015 and $0.0018 for various criteria (Step-Up volume,
ADAV of a set number of shares, ADV as a percentage of TCV, etc.);
and BZX Equities Fee Schedule, footnote 1, ``Add Volume Tiers'',
Non-Displayed Add Volume Tiers, which provide for substantially
similar enhanced rebates and non-displayed volume based criteria.
---------------------------------------------------------------------------

    Moreover, the Exchange believes the Remove Volume Tier is a
reasonable means to incentivize Members to continue to provide
liquidity adding, displayed volume to the Exchange by offering them a
different, additional opportunity than that of the current Add Volume
Tiers--to receive a reduced fee on their liquidity removing orders by
meeting the proposed criteria in submitting additional add volume order
flow. In addition to this, the Exchange has recently observed that
trading in subdollar names has grown significantly; nearly tripling
since the beginning of 2020, and that competing equities exchanges have
begun offering pricing incentives for subdollar orders.\29\ Therefore,
the Exchange believes that it is reasonable and equitable to provide
the proposed reduced fee under the new Remove Volume Tier for
qualifying subdollar orders. Also, as noted above, the Exchange's
affiliated equities exchanges already have similar Remove Volume Tiers
in place, which offer similar rebates for achieving comparable
criteria, in addition to their Add Volume Tiers.\30\
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    \29\ See NYSE Price List, ``Fees and Credits applicable to
Designated Market Makers (``DMMs'')'', which provides, among various
credits for orders in securities at or above $1.00, additional
credit of $0.0004 for DMMs adding liquidity in securities under
$1.00; see also Securities Exchange Release No. 89607 (August 18,
2020), 85 FR 52179 (August 24, 2020) (SR-NYSEArca-2020-75), which
recently adopted in its fee schedule a step up tier for ETP Holders
adding liquidity in Round Lots and Odd Lots in Tapes A, B and C
securities with a per share price below $1.00 and amended the base
rate for adding and removing liquidity in Round Lots and Odd Lots in
Tapes A, B and C securities with a per share price below $1.00.
    \30\ See supra note 28.
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    In addition to this, the Exchange believes the proposed Non-
Displayed Volume Tiers are reasonable in that the proposed changes to
the tiers' criteria is designed to be more consistent with the format
of the criteria (i.e., percentage of volume based on TCV) currently
offered under the other volume-based tiers in the Fee Schedule.\31\
Also, as noted above, the Exchange's affiliated equities exchange, BZX
Equities, currently has Non-Displayed Volume Tiers in place, which
offer substantially similar enhanced rebates and criteria based on
volume over TCV for its members.\32\
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    \31\ See supra note 14.
    \32\ See supra note 28.
---------------------------------------------------------------------------

    Overall, the Exchange believes that the proposed tiers, each based
on a Member's liquidity adding orders, will benefit all market
participants by incentivizing continuous liquidity and thus, deeper
more liquid markets as well as increased execution opportunities.
Particularly, the proposed Remove Volume Tier is designed to
incentivize continuous displayed liquidity, which signals other market
participants to take the additional execution opportunities provided by
such liquidity, while the proposed Non-Displayed Add Volume Tiers
remains designed to incentivize non-displayed liquidity, which further
contributes to a deeper, more liquid market and provide even more
execution opportunities for active market participants at improved
prices. This overall increase in activity deepens the Exchange's
liquidity pool, offers additional cost savings, supports the quality of
price discovery, promotes market transparency and improves market
quality, for all investors.
    The Exchange believes that the proposal represents an equitable
allocation of fees and rebates and is not unfairly discriminatory
because all Members are eligible for the proposed Remove Volume Tier
and Non-Displayed Add Volume Tiers and would have the opportunity to
meet the tiers' criteria and would receive the proposed fee if such
criteria is met. Without having a view of activity on other markets and
off-exchange venues, the Exchange has no way of knowing whether this
proposed rule change would definitely result in any Members qualifying
for the proposed tiers. While the Exchange has no way of predicting
with certainty how the proposed tier will impact Member activity, the
Exchange anticipates that approximately eight Members will be able to
compete for and reach the proposed Remove Volume Tier. The Exchange
also notes that while the proposed changes to the criteria in the Non-
Displayed Add Volume Tiers do not significantly increase or decrease
the level of criteria difficulty, thus do not significantly affect
Members' current ability to compete for and reach the proposed tiers,
approximately three additional Members will be able to compete for and
reach these tiers, as amended. The Exchange anticipates that the tiers
will include various liquidity providing Member types, such as
traditional Market Makers, and wholesale or consolidator firms that
mainly make markets for retail orders, each providing distinct types of
order flow to the Exchange to the benefit of all market participants.
The Exchange also notes that proposed tiers will not adversely impact
any Member's pricing or ability to qualify for other reduced fee or
enhanced rebate tiers. Should a Member not meet the proposed criteria
under any of the proposed tiers, the Member will merely not receive
that corresponding reduced fee. Furthermore, the proposed reduced fee
in the Remove Volume Tier would uniformly apply to all Members that
meet the required criteria under the proposed tier. The Exchange again
notes that the enhanced rebates offered under the Non-Displayed Add
Volume Tiers remain the same.

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

    The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Rather, as discussed above, the
Exchange believes that the proposed change would encourage the
submission of additional order flow to a public exchange, thereby
promoting market depth, execution incentives and enhanced execution
opportunities, as well as price discovery and transparency for all
Members. As a result, the Exchange believes that the proposed change
furthers the Commission's goal in adopting Regulation NMS of fostering
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.''
    The Exchange believes the proposed rule change does not impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Particularly, the proposed
change applies to all Members equally in that all Members are eligible
for the proposed Remove Volume Tier and the proposed Non-Displayed Add
Volume Tiers, have a reasonable opportunity to meet the tiers' criteria
and will all receive the proposed fee if such criteria is met.
Additionally, the proposed tiers are designed to attract additional
order flow to the Exchange. The Exchange believes that the additional
and updated tier criteria would incentivize market participants to
direct liquidity adding order flow to the Exchange, bringing with it
improved price transparency. Greater overall order

flow and pricing transparency benefits all market participants on the
Exchange by providing more trading opportunities, enhancing market
quality, and continuing to encourage Members to send orders, thereby
contributing towards a robust and well-balanced market ecosystem, which
benefits all market participants. Further, the proposed standard rebate
for orders that add liquidity in securities below $1.00 and the
proposed no charge for orders yielding fee code ZM will apply uniformly
and automatically to all such Members' respective orders, as all other
standard rates and fee codes apply today to qualifying orders. In
addition to this, and as indicated above, the Exchange does not believe
that not assessing a fee for Retail Orders yielding fee code ZM imposes
any burden on intramarket competition as the Exchange offers many
similar rebate opportunities for non-Retail Orders in it Fee
Schedule.\33\
---------------------------------------------------------------------------

    \33\ See supra note 26.
---------------------------------------------------------------------------

    Next, the Exchange believes the proposed rule change does not
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As previously
discussed, the Exchange operates in a highly competitive market.
Members have numerous alternative venues that they may participate on
and direct their order flow, including 12 other equities exchanges and
off-exchange venues and alternative trading systems. Additionally, the
Exchange represents a small percentage of the overall market. Based on
publicly available information, no single equities exchange has more
than 18% of the market share. Therefore, no exchange possesses
significant pricing power in the execution of order flow. Indeed,
participants can readily choose to send their orders to other exchange
and off-exchange venues if they deem fee levels at those other venues
to be more favorable. Moreover, the Commission has repeatedly expressed
its preference for competition over regulatory intervention in
determining prices, products, and services in the securities markets.
Specifically, in Regulation NMS, the Commission highlighted the
importance of market forces in determining prices and SRO revenues and,
also, recognized that current regulation of the market system ``has
been remarkably successful in promoting market competition in its
broader forms that are most important to investors and listed
companies.'' The fact that this market is competitive has also long
been recognized by the courts. In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .'' Accordingly, the Exchange does not believe its
proposed fee change imposes any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \34\ and paragraph (f) of Rule 19b-4 \35\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78s(b)(3)(A).
    \35\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeEDGX-2020-045 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CboeEDGX-2020-045. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeEDGX-2020-045, and should be
submitted on or before October 20, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
---------------------------------------------------------------------------

    \36\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-21406 Filed 9-28-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 149 (Friday, August 2, 2019)]
[Notices]
[Pages 37920-37921]
[FR Doc No: 2019-16472]

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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736.

Extension:
    Rule 607, SEC File No. 270-561, OMB Control No. 3235-0747,
Request for a New OMB Control No.

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (the ``Commission'') has submitted to the Office of
Management and Budget a request for extension of the previously
approved collection of information discussed below.
    Regulation E (17 CFR 230.601-230.610a) exempts from registration
under the Securities Act of 1933 (15 U.S.C. 77a et seq.) (``Securities
Act'') securities issued by a small business investment company
(``SBIC'') which is registered under the Investment Company Act of 1940
(15 U.S.C. 80a-1 et seq.) (``Investment Company Act'') or a closed-end
investment company that has elected to be regulated as a business
development company (``BDC'') under the Investment Company Act, so long
as the aggregate offering price of all securities of the issuer that
may be sold within a 12-month period does not exceed $5,000,000 and
certain other conditions are met. Rule 607 under Regulation E (17 CFR
230.607) entitled, ``Sales material to be filed,'' requires sales
material used in connection with securities offerings under Regulation
E to be filed with the Commission at least five days (excluding
weekends and

holidays) prior to its use.\1\ Commission staff reviews sales material
filed under rule 607 for materially misleading statements and
omissions. The requirements of rule 607 are designed to protect
investors from the use of false or misleading sales material in
connection with Regulation E offerings.
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    \1\ Sales material includes advertisements, articles or other
communications to be published in newspapers, magazines, or other
periodicals; radio and television scripts; and letters, circulars or
other written communications proposed to be sent given or otherwise
communicated to more than ten persons.
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    Respondents to this collection of information include SBICs and
BDCs making an offering of securities pursuant to Regulation E. Two
filings were submitted to the Commission under rule 607 in 2016, 2017,
and 2018. Accordingly, we estimate one annual response. Each
respondent's reporting burden under rule 607 relates to the burden
associated with filing its sales material electronically, which is
negligible. For administrative purposes, we estimate an annual burden
of one hour.
    The requirements of this collection of information are mandatory.
Responses will not be kept confidential. An agency may not conduct or
sponsor, and a person is not required to respond to a collection of
information unless it displays a currently valid control number.
    The public may view the background documentation for this
information collection at the following website, www.reginfo.gov.
Comments should be directed to: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503, or by sending an email to:
<EMAIL_ADDRESS>and (ii) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Candace Kenner, 100 F Street NE, Washington, DC 20549 or send an email
to<EMAIL_ADDRESS>Comments must be submitted to OMB within 30
days of this notice.

    Dated: July 29, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-16472 Filed 8-1-19; 8:45 am]
 BILLING CODE 8011-01-P