[Federal Register: May 20, 2009 (Volume 74, Number 96)]
[Rules and Regulations]
[Page 23622-23625]
[DOCID:fr20my09-6]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0449; Directorate Identifier 2008-NM-034-AD;
Amendment 39-15907; AD 2009-10-11]
RIN 2120-AA64

Airworthiness Directives; Airbus Model A330-300, A340-200, and
A340-300 Series Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule; request for comments.

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SUMMARY: We are adopting a new airworthiness directive (AD) for the
products listed above. This AD results

from mandatory continuing airworthiness information (MCAI) originated
by an aviation authority of another country to identify and correct an
unsafe condition on an aviation product. The MCAI describes the unsafe
condition as:

    Based on some recent in-service findings for fluid ingress and/
or inner skin disbond damage on rudders which could result in
reduced structural integrity of the rudder, AIRBUS decided to
introduce some further structural inspections to specific rudder
areas[.]
* * * * *
This AD requires actions that are intended to address the unsafe
condition described in the MCAI.

DATES: This AD becomes effective June 4, 2009.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in the AD as of June 4, 2009.
    We must receive comments on this AD by June 19, 2009.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://
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: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-40, 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the regulatory evaluation,
any comments received, and other information. The street address for
the Docket Operations office (telephone<PHONE_NUMBER>) is in the
ADDRESSES section. Comments will be available in the AD docket shortly
after receipt.

FOR FURTHER INFORMATION CONTACT: Dan Rodina, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
227-2125; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued EASA
Airworthiness Directive 2008-0012, dated January 14, 2008 (referred to
after this as ``the MCAI''), to correct an unsafe condition for the
specified products. The MCAI states:

    Based on some recent in-service findings for fluid ingress and/
or inner skin disbond damage on rudders which could result in
reduced structural integrity of the rudder, AIRBUS decided to
introduce some further structural inspections to specific rudder
areas:

--A special detailed one time structural inspection to specific
rudder areas to ensure earlier detection of damage at the inspected
areas,
--A repetitive specific ultrasonic inspection along the complete
rudder panel front and bottom edges (complete z-profile area along
the spar and the bottom rib) to detect any damage in this area.

    The aim of this Airworthiness Directive (AD) is to render
mandatory this additional inspection program in order to maintain
the structural integrity of the rudder.

The special detailed one-time structural inspection consists of doing a
thermography or x-ray inspection and an ultrasonic inspection to detect
damage of the rudders at the rudder hoisting points and trailing edge
screw areas. The corrective actions depend on the findings and the
extent of the damage found, and include doing the repair or contacting
Airbus and following their repair instructions.
    The repetitive ultrasonic inspection along the complete rudder
panel front and bottom edges (complete z-profile area along the spar
and the bottom rib) to detect damage also includes doing related
investigative and corrective actions. The related investigative action
is a thermography inspection for inner skin disbond damage and fluid
ingress on the rudder. The corrective actions depend on the findings
and the extent of the damage found, and may include venting the core (a
temporary repair), and contacting Airbus and following their repair
instructions for a permanent repair.
    The compliance time for the corrective actions for the special
detailed one-time structural inspection ranges between ``before further
flight'' and 4,500 flight cycles, depending on the damage finding. The
compliance time for the corrective actions for the repetitive
ultrasonic inspections ranges between ``before further flight'' and
2,500 flight cycles, depending on the damage finding and whether the
temporary repair is done. The repetitive interval for the ultrasonic
inspections is 5,000 flight cycles, except after doing the temporary
repair, in which case the interval is 500 flight cycles until a
permanent repair is done, after which time the interval is 5,000 flight
cycles.
    You may obtain further information by examining the MCAI in the AD
docket.

Relevant Service Information

    Airbus has issued the following service bulletins:
     Airbus Mandatory Service Bulletin A330-55-3037, including
Appendix 01, dated October 11, 2007;
     Airbus Mandatory Service Bulletin A330-55-3038, dated
November 7, 2007;
     Airbus Mandatory Service Bulletin A340-55-4033, including
Appendix 01, dated October 11, 2007; and
     Airbus Mandatory Service Bulletin A340-55-4034, dated
November 7, 2007.
    The actions described in this service information are intended to
correct the unsafe condition identified in the MCAI.

FAA's Determination and Requirements of This AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are issuing this AD because we
evaluated all pertinent information and determined the unsafe condition
exists and is likely to exist or develop on other products of the same
type design.
    There are no products of this type currently registered in the
United States. However, this rule is necessary to ensure that the
described unsafe condition is addressed if any of these products are
placed on the U.S. Register in the future.

Differences Between the AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information
provided in the MCAI and related service information.
    We might also have required different actions in this AD from those
in the

MCAI in order to follow FAA policies. Any such differences are
highlighted in a NOTE within the AD.

FAA's Determination of the Effective Date

    Since there are currently no domestic operators of this product,
notice and opportunity for public comment before issuing this AD are
unnecessary.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not precede it by notice and opportunity for public
comment. We invite you to send any written relevant data, views, or
arguments about this AD. Send your comments to an address listed under
the ADDRESSES section. Include ``Docket No. FAA-2009-0449; Directorate
Identifier 2008-NM-034-AD'' at the beginning of your comments. We
specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this AD. We will consider all
comments received by the closing date and may amend this AD because of
those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this AD.

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.
    We are 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

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will 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 AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the FAA amends 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 AD:

2009-10-11 Airbus: Amendment 39-15907. Docket No. FAA-2009-0449;
Directorate Identifier 2008-NM-034-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective June 4,
2009.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Airbus Model A330-300, A340-200, and
A340-300 series airplanes, certificated in any category, all serial
numbers, on which a carbon fiber-reinforced plastic (CFRP) rudder
part number (PN) A55471500 series is fitted.

Subject

    (d) Air Transport Association (ATA) of America Code 55:
Stabilizers.

Reason

    (e) The mandatory continued airworthiness information (MCAI)
states:
    Based on some recent in-service findings for fluid ingress and/
or inner skin disbond damage on rudders which could result in
reduced structural integrity of the rudder, AIRBUS decided to
introduce some further structural inspections to specific rudder
areas[.]

Actions and Compliance

    (f) Unless already done, do the following actions.
    (1) Within 500 flight cycles or 6 months after the effective
date of this AD, whichever occurs first: Perform a special detailed
one-time inspection to detect damage in the areas of the rudder
hoisting points and trailing edge screw, in accordance with the
Accomplishment Instructions of Airbus Mandatory Service Bulletin
A330-55-3037, dated October 11, 2007; or Airbus Mandatory Service
Bulletin A340-55-4033, dated October 11, 2007; as applicable. Do all
applicable corrective actions at the times specified in and in
accordance with Airbus Mandatory Service Bulletin A330-55-3037,
dated October 11, 2007; or Airbus Mandatory Service Bulletin A340-
55-4033, dated October 11, 2007; as applicable.
    (2) Submit a report of the findings of the inspection required
by paragraph (f)(1) of this AD to Airbus in accordance with the
instructions of Appendix 01 of Airbus Mandatory Service Bulletin
A330-55-3037, dated October 11, 2007; or Airbus Mandatory Service
Bulletin A340-55-4033, dated October 11, 2007; as applicable; at the
applicable time specified in paragraph (f)(2)(i) or (f)(2)(ii) of
this AD.
    (i) If the inspection was done on or after the effective date of
this AD: Submit the report within 30 days after the inspection.
    (ii) If the inspection was done before the effective date of
this AD: Submit the report within 30 days after the effective date
of this AD.
    (3) Within 500 flight cycles or 6 months after the effective
date of this AD, whichever occurs first: Perform a special detailed
inspection along the rudder z-profile to detect inner skin disbond
damage, in accordance with the Accomplishment Instructions of Airbus
Mandatory Service Bulletin A330-55-3038, dated November 7, 2007; or
Airbus Mandatory Service Bulletin A340-55-4034, dated November 7,
2007; as applicable. Do all applicable related investigative and
corrective actions at the times specified in and in accordance with
Airbus Mandatory Service Bulletin A330-55-3038, dated November 7,
2007; or Airbus Mandatory Service Bulletin A340-55-4034, dated
November 7, 2007; as applicable.
    (4) Submit a report of the findings of the inspection required
by paragraph (f)(3) of this AD to Airbus in accordance with the
instructions of Airbus Mandatory Service Bulletin A330-55-3038,
dated November 7, 2007; or Airbus Mandatory Service Bulletin A340-
55-4034, dated November 7, 2007; as applicable; at the applicable
time specified in paragraph (f)(4)(i) or (f)(4)(ii) of this AD.
    (i) If the inspection was done on or after the effective date of
this AD: Submit the report within 30 days after the inspection.
    (ii) If the inspection was done before the effective date of
this AD: Submit the report within 30 days after the effective date
of this AD.
    (5) As of the effective date of this AD, no person may install a
part number (P/N) A55471500 series rudder on an aircraft as a

replacement part, unless it has been inspected and, as applicable,
repaired in accordance with the instructions of Airbus Mandatory
Service Bulletin A330-55-3037, dated October 11, 2007, or Airbus
Mandatory Service Bulletin A340-55-4033, dated October 11, 2007; and
Airbus Mandatory Service Bulletin A330-55-3038, dated November 7,
2007, or Airbus Mandatory Service Bulletin A340-55-4034, dated
November 7, 2007.

FAA AD Differences

    Note 1: This AD differs from the MCAI and/or service information
as follows: No differences.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, Transport Airplane Directorate, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. Send information to ATTN: Dan
Rodina, Aerospace Engineer, International Branch, ANM-116, Transport
Airplane Directorate, FAA, 1601 Lind Avenue, SW., Renton, Washington
98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before
using any approved AMOC on any airplane to which the AMOC applies,
notify your principal maintenance inspector (PMI) or principal
avionics inspector (PAI), as appropriate, or lacking a principal
inspector, your local Flight Standards District Office. The AMOC
approval letter must specifically reference this AD.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act, the
Office of Management and Budget (OMB) has approved the information
collection requirements and has assigned OMB Control Number 2120-
0056.

Related Information

    (h) Refer to MCAI European Aviation Safety Agency Airworthiness
Directive 2008-0012, dated January 14, 2008; and the service
bulletins listed in Table 1 of this AD; for related information.

                       Table 1--Service Bulletins
------------------------------------------------------------------------
 Airbus Mandatory Service Bulletin--                Dated--
------------------------------------------------------------------------
A330-55-3037........................  October 11, 2007.
A330-55-3038........................  November 7, 2007.
A340-55-4033........................  October 11, 2007.
A340-55-4034........................  November 7, 2007.
------------------------------------------------------------------------

Material Incorporated by Reference

    (i) You must use the service information contained in Table 2 of
this AD to do the actions required by this AD, as applicable, unless
the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Airbus SAS--Airworthiness Office--EAL, 1 Rond Point Maurice
Bellonte, 31707 Blagnac Cedex, France; fax +33 5 61 93 45 80, e-mail
<EMAIL_ADDRESS>Internet http://www.airbus.com.
    (3) You may review copies of the service information that is
incorporated by reference at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue, SW., Renton, Washington. For
information on the availability of this material at the FAA, call
425-227-1221 or<PHONE_NUMBER>.
    (4) You may also review copies of the service information at the
National Archives and Records Administration (NARA). For information
on the availability of this material at NARA, call<PHONE_NUMBER>, or
go to: http://www.archives.gov/federal_register/code_of_federal_
regulations/ibr_locations.html.

               Table 2--Material Incorporated by Reference
------------------------------------------------------------------------
               Document                               Date
------------------------------------------------------------------------
Airbus Mandatory Service Bulletin      October 11, 2007.
 A330-55-3037, excluding Appendix 01.
Airbus Mandatory Service Bulletin      November 7, 2007.
 A330-55-3038, including Appendix 01.
Airbus Mandatory Service Bulletin      October 11, 2007.
 A340-55-4033, excluding Appendix 01.
Airbus Mandatory Service Bulletin      November 7, 2007.
 A340-55-4034, including Appendix 01.
------------------------------------------------------------------------

    Issued in Renton, Washington, on May 6, 2009.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E9-11283 Filed 5-19-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 88, Number 167 (Wednesday, August 30, 2023)]
[Rules and Regulations]
[Pages 59799-59800]
[FR Doc No: 2023-18739]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2022-0237]
RIN 1625-AA09

Drawbridge Operation Regulation; Keweenaw Waterway, Between
Houghton and Hancock, MI

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is altering the operating schedule that
governs the US41 Bridge, mile 16.0, over the Keweenaw Waterway between
the towns of Houghton and Hancock, Michigan. This change is being made
at the request of the Michigan Department of Transportation, who owns
and operates this bridge.

DATES: This rule is effective September 29, 2023.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to https://www.regulations.gov. Type the
docket number USCG-2022-0237 in the ``SEARCH'' box and click
``SEARCH''. In the Document Type column, select ``Supporting & Related
Material.''

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Mr. Lee D. Soule, Bridge Management Specialist, Ninth
Coast Guard District; telephone<PHONE_NUMBER>, email
[email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations [Delete/Add Any Abbreviations Not Used/Used
in This Document]

CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
IGLD85 International Great Lakes Datum of 1985
LWD Low Water Datum Based on IGLD85
OMB Office of Management and Budget
MDOT Michigan Department of Transportation
NPRM Notice of Proposed Rulemaking (Advance, Supplemental)
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    The US41 Bridge, mile 16.0, over the Keweenaw Waterway between the
towns of Houghton and Hancock, Michigan, is owned and operated by MDOT
and is the only crossing over the waterway. The US41 Bridge, mile 16.0,
over the Keweenaw Waterway is a combination highway and railroad double
deck lift bridge that provides a horizontal clearance of 7-feet in the
down position, 103-feet in the open position, and 35-feet in the
intermediate position above LWD.
    The Keweenaw Waterway divides the Keweenaw Peninsula and is in the
middle of the south shore of Lake Superior, a Great Lake known for
hazardous weather conditions.
    The Federal Government improved the Keweenaw Waterway in 1861 to
accommodate interstate commerce and create a harbor of safe refuge for
vessels caught in bad weather and is located halfway between Duluth,
Minnesota and Sault Ste. Marie, Michigan. Commercial vessels, including
some over 700-feet in length, and powered and non-powered recreational
vessels utilize the waterway. The passenger vessel RANGER III operates
from the east side of the US41 Bridge, mile 16.0, over the Keweenaw
Waterway to Isle Royal and is operated by the National Park Service
with a capacity of 128-passengers. A U.S. Coast Guard Station is
located at the far west end of the waterway.
    The bridge has special operating conditions listed in 33 CFR
117.635 that requires the bridge to open on signal; except that from
April 15 through December 14, between midnight and 4 a.m., the draw
shall be placed in the intermediate position and open on signal if at
least 2 hours' notice is given. From December 15 through April 14 the
draw shall open on signal if at least 12 hours' notice is given.
    On May 19, 2022, we published in the Federal Register (87 FR 30418)
a notice of temporary deviation from regulations; request for comments
to test a change to the drawbridge operation schedule to determine
whether a permanent change to the schedule was needed. The Coast Guard
sought comments from the public regarding the proposed changes. This
deviation was effective from 7 a.m. on May 26, 2022, through 7 p.m. on
September 6, 2022. Comments and related material had to reach the Coast
Guard on or before November 1, 2022. In this document we provided data
of three years of drawtender logs and average daily vehicle crossings
provided by MDOT.
    On April 12, 2023, we published in the Federal Register (88 FR
21940) a notice of proposed rulemaking proposing a permanent change to
the bridge's operating schedule. Comments and related material were
required to be received by the Coast Guard on or before June 12, 2023.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority 33 U.S.C. 499.
    The Michigan Department of Transportation, who owns and operates
the bridge, requested a change to the drawbridge operation schedule to
help facilitate all modes of transportation at the bridge.

IV. Discussion of Comments

    We received only two comments on the proposed rule and one was a
duplication of the other. The commenter was in full support of the rule
and no changes have been made as a result.
    Ben Larson, Houghton County Administrator, on behalf of the
residents, looked forward to the approval of the new regulation
becoming.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. This rule has not been designated a ``significant
regulatory action,'' under Executive Order 12866. Accordingly, it has
not been reviewed by the Office of Management and Budget (OMB).
    This regulatory action determination is based on the ability that
vessels can still transit the bridge given advanced notice or that the
scheduled openings will provide for the reasonable needs of navigation.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as
amended, requires federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions

with populations of less than 50,000. The Coast Guard did not receive
any comments from the Small Business Administration on this rule. The
Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not
have a significant economic impact on a substantial number of small
entities.
    While some owners or operators of vessels intending to transit the
bridge may be small entities, for the reasons stated in section V. A
above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Government

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has 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. We have analyzed this rule under that order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.
    We did not receive any comments regarding Indian tribes.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or Tribal Government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble. We did not receive any comments regarding the
Unfunded Mandates Reform Act of 1995.

F. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01, Rev.1, associated implementing
instructions, and Environmental Planning Policy COMDTINST 5090.1
(series) which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f). The
Coast Guard has determined that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. This rule promulgates the operating
regulations or procedures for drawbridges and is categorically excluded
from further review, under paragraph L49, of Chapter 3, Table 3-1 of
the U.S. Coast Guard Environmental Planning Implementation Procedures.
    Neither a Record of Environmental Consideration nor a Memorandum
for the Record are required for this rule.

List of Subjects in 33 CFR Part 117

    Bridges.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 117 as follows:

PART 117--DRAWBRIDGE OPERATION REGULATIONS

0
1. The authority citation for part 117 continues to read as follows:

    Authority:  33 U.S.C. 499; 33 CFR 1.05-1; and Department of
Homeland Security Delegation No. 00170.1. Revision No. 01.3.

0
2. Revise Sec.  117.635 Keweenaw Waterway to read as follows:

Sec.  117.635  Keweenaw Waterway.

    (a) The draw of the U.S. 41 Bridge, mile 16, shall open on signal,
except that:
    (1) From April 15 through December 14, between the hours of 7 a.m.
and 7 p.m. Monday through Friday, less Federal holidays, the bridge
shall open on signal from five minutes before to five minutes after the
hour and half hour for vessels. Documented vessels over 300-feet shall
not be held at the bridge but will be passed as soon as possible.
    (2) From April 15 through December 14 between midnight and 4 a.m.
daily, the draw shall be placed in the intermediate position and open
on signal if at least 2 hours' notice is given.
    (3) From December 15 through April 14 the draw shall open on signal
if at least 12 hours' notice is given.
    (b) [Reserved]

Jonathan Hickey,
Rear Admiral, U.S. Coast Guard, Commander, Ninth Coast Guard District.
[FR Doc. 2023-18739 Filed 8-29-23; 8:45 am]
BILLING CODE 9110-04-P


1 Instructions for Reporting for the 2006 Partial Updating of the TSCA Chemical Inventory Database Susan Sharkey Economics and Policy Analysis Branch Economics, Exposure and Technology Division Office of Pollution Prevention and Toxics IUR Public Meeting August 1, 2003 Washington, DC 2 What is TSCA?

The Toxic Substances Control Act ( TSCA)

became effective on Jan 1, 1977; it gives EPA broad authority to:

° gather information on chemical health, safety,

and exposure ° require testing, and ° control exposure based on " unreasonable"

risks

for the over 76,000 industrial or commercial chemicals produced or imported into the U. S. 3 What was the Inventory Update Rule ( IUR)? ( prior to 2003 amendments)

 Updated TSCA Chemical Substances Inventory by providing a " snapshot" of organic chemical manufacturing every 4 years  Collected information from:

° Sites manufacturing or importing 10,000 lbs/ yr or more ° Exemptions for inorganic chemicals, polymers, and others  Collected information on:

° Company name, facility location, D& B number ° Chemical name, site limited status,

production volume 4 What is the IUR now?

( since the amendments)

 Updates TSCA Chemical Substances Inventory by providing a " snapshot" of chemical manufacturing every 4 years  Collects information from:

° Sites manufacturing or importing 25,000 lbs/ yr or more ( includes inorganic chemicals)

° Full & partial exemptions  Collects information on:

° Company and facility identification ° Chemical identification, site limited status, production volume ° Manufacturing exposure related information ° Processing and use exposure related information 5 Who needs to report under the IUR?

 Chemical manufacturers and importers with:

° Production volume of 25,000 lbs or greater ( annual, per site)

report site and manufacturing data ° Production volume of 300,000 lbs or greater ( annual, per site) report processing and use data  Inorganic chemical manufacturers and importers:

° Partial exemption for first reporting cycle, and only report site and manufacturing data ° After first reporting cycle, report as described for chemical manufacturers and importers above 6 Exemptions to Reporting  Full exemptions ( no reporting unless otherwise specified)

° Small businesses ( as defined by TSCA)

° Total annual sales, including parent company, less than $ 40 million and annual site production volume 100,000 lbs or lower OR ° Total annual sales, including parent company, less than $ 4 million.

° Natural gas streams ( specifically identified)

 Partial exemptions ( report only site and manufacturing data)

° Inorganic chemicals ( for first reporting cycle only)

° Certain petroleum streams ( specifically identified)

° Specifically listed chemical substances for which there is a low current need for processing and use information 7 What manufacturing data is reported?

 Current IUR information still reported:

° Chemical name ° Numerical identification ° Production volume ° Site limited status ° Manufacturing or Import activity  Exposure related information added:

° Number of potentially exposed workers ( range)

° Physical form, w/ associated percent production volume ° Maximum concentration ( range)

 Report " known to or reasonably ascertainable by"

information 8 What industrial processing and use data is reported?

 Up to 10 unique combinations of ° Type of process or use ° NAICS code ° Industrial function category ( bleaching agent, filler, lubricant,

etc)

 For each unique combination, report ° Percent production volume ( range)

° Number of sites ( range)

° Number of potentially exposed workers ( range)

 Report " readily obtainable" information 9 What consumer and commercial use data is reported?

 Use category ( automotive care product, lawn & garden product, soaps & detergents, etc)

 For each use category, report:

° Indication of intention of use by children ° Maximum chemical concentration ° Percent of production volume  Report " readily obtainable" information 10 What other changes were made by the amendments?

 Modified CBI requirements ° Added ability to claim production volume range as CBI ° Added upfront substantiation requirement for site identity claims  Adjusted administrative reporting details ° Changed to calendar year reporting from fiscal year reporting ° Adjusted recordkeeping requirements from 4 years to 5 years  Modified company and site identifier data ° Added county of the plant site ° Added technical contact email address 11 Benefits of IUR Exposure Related Information

enabling a " first look" at a chemical, industry, or use by providing needed information not otherwise available

enabling a more effective early screening of chemicals and uses to identify priorities for resources

allowing the Agency to be proactive rather than reactive by providing information needed to identify trends and upcoming issues or concerns

providing a starting point for more in depth analyses and identifying where additional information may be needed

allowing the Agency and others to put hazard information into context,

such as information collected through the HPV Challenge and similar programs Congress has charged EPA through TSCA with protecting human health and the environment from commercial chemicals. The amended IUR collection will provide basic information needed to fulfill our mandate by providing a starting point of basic exposure information.

Benefits include: 12 Chapter 2: Reporting Requirements Chapter 3: When You Must Report and Fred Arnold Chemical Engineering Branch Economics, Exposure and Technology Division Office of Pollution Prevention and Toxics IUR Public Meeting August 1, 2003 Washington, DC 13 Overview of Chapters 2 and 3  Reporting requirements ° Who must report?

° What chemicals must be reported?

° Determining what parts of Form U to complete ° Exemptions ° Examples  When to report  Discussion 14 Determining Reporting Requirements Is the substance reportable? Are you a manufacturer required to report?

CRITERIA I CRITERIA II 15 CRITERIA I YES YES EVALUATE CRITERIA II YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance reportable?

Is the substance exempt from reporting?

( 710.46a) Is the substance subject to a special action?( 710.46)

Is the substance on the TSCA Inventory?

( 710.45 and 710.53) 16 Is the substance on the TSCA Inventory?

Chemical substances reportable under IUR must appear on the TSCA Inventory at the beginning of the submission period

Hydrates are not listed on the TSCA Inventory. You must report for the corresponding anhydrous form ( 40 CFR 710.3)

See 2.1.1 for additional details YES YES EVALUATE CRITERIA II YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance exempt from reporting?

( 710.46a) Is the substance subject to a special action?

( 710.46)

Is the substance on the TSCA Inventory?

( 710.45 and 710.53) 17 What is the TSCA Inventory?

 EPA classifies all chemicals as " existing" or " new"

 All existing chemicals are compiled in a list called the Toxic Substances Control Act Chemical Substance Inventory or TSCA Inventory  Originally compiled in 1978 and 1979  EPA adds new chemicals to the Inventory when companies submit a Notice of Commencement  ~ 75,000 chemicals are listed 18 Is the substance exempt?

Polymers, certain natural gas streams, microorganisms, and naturally occurring substances are largely exempt from reporting.

Some groups of chemicals are partially exempt from reporting.

See Section 2.1.2 for additional details.

YES YES EVALUATE CRITERIA II YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance exempt from reporting?

( 710.46a) Is the substance subject to a special action?

( 710.46)

Is the substance on the TSCA Inventory?

( 710.45 and 710.53) 19 Is the substance subject to a special action?

Polymers, certain natural gas streams, and microorganisms are not exempt when they are subject to a rule proposed or promulgated under certain sections of TSCA.

See Section 2.1.3, 40 CFR 710.46, and Appendix C for additional details. YES YES EVALUATE CRITERIA II YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance exempt from reporting?

( 710.46a) Is the substance subject to a special action?

( 710.46)

Is the substance on the TSCA Inventory?

( 710.45 and 710.53) 20 YES YES EVALUATE CRITERIA II YES NO NO NO Is the substance exempt from reporting?

( 710.46a) Is the substance subject to a special action?

( 710.46)

Is the substance on the TSCA Inventory?

( 710.45 and 710.53)

Is the substance reportable?

CRITERIA I YOU DO NOT NEED TO REPORT 21 Do you qualify as a small manufacturer?

( 710.49) Did you manufacture 25,000 pounds or more?

( 710.48) Do you qualify for additional exemptions?

( 710.50)

YES YOU MUST REPORT YES NO YOU DO NOT NEED TO REPORT NO NO CRITERIA II Is the substance subject to a special action?

( 710.46)

YES NO YES 22 Do you qualify as a small manufacturer?

( 710.49) Did you manufacture 25,000 pounds or more?

( 710.48) Do you qualify for additional exemptions?

( 710.50)

YES YOU MUST REPORT YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance subject to a special action?

( 710.46)

YES NO YES Do you manufacture in quantities over 25,000 pounds?

Only report a chemical substance manufactured and/ or imported 25,000 pounds or more at any single site.

Report the substance for all sites at which you manufactured and/ or imported 25,000 pounds or more. 23 Annual Production Volume Threshold Example Green Chemical Company Annual Sales $ 50 Million Pennsylvania Site 21,000 pounds propylene manufactured 5,000 pounds imported New York Site 50,000 pounds of a 50% acetylene mixture Which sites need to report?

BOTH Both sites exceed the 25,000 pound threshold 24 Do you qualify as a small manufacturer?

Total annual sales < $ 4 million OR

Total annual sales < $ 40 million ( company wide); and Production volume < 100,000 lbs. ( for a chemical substance at a single plant site)

NOTE: Small manufacturers are still required to report on substances subject to a rule proposed or promulgated under certain sections of TSCA ( 710.46).

Do you qualify as a small manufacturer?

( 710.49) Did you manufacture 25,000 pounds or more?

( 710.48) Do you qualify for additional exemptions?

( 710.50)

YES YOU MUST REPORT YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance subject to a special action?

( 710.46)

YES NO YES 25 Small Manufacturer Exemption Example AAA Chemical Company Annual Sales $ 30 Million New Jersey Site 200,000 pounds xylene Delaware Site 75,000 pounds xylene Which sites need to report?

AAA Chemical Company is not required to report for the Delaware site since annual production volume did not exceed 100,000 pounds and total annual sales were less than $ 40 million.

New Jersey Site 26 Is the substance subject to a special action?

Substances must be reported if they are subject to a special action.

See Section 2.1.3, 40 CFR 710.46, and Appendix C for additional details.

Do you qualify as a small manufacturer?

( 710.49) Did you manufacture 25,000 pounds or more?

( 710.48) Do you qualify for additional exemptions?

( 710.50)

YES YOU MUST REPORT YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance subject to a special action?

( 710.46)

YES NO YES 27 Do you qualify for additional exemptions?

If you manufacture or import under the following circumstances you are not required to report:

° Substance is imported as an article ( 710.50).

° Substance is manufactured as an impurity, by product, or non isolated intermediate ( 710.50, 720.30( g) and ( h)).

° All IUR information was submitted in response to another TSCA Section 8( a) rule within the last year ( CFR 710.55).

Do you qualify as a small manufacturer?

( 710.49) Did you manufacture 25,000 pounds or more?

( 710.48) Do you qualify for additional exemptions?

( 710.50)

YES YOU MUST REPORT YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance subject to a special action?

( 710.46)

YES NO YES 28 What information do you need to report? Part III Complete for all reportable substances. Complete if you produce greater than 300,000 pounds per year except for the following:

1) Petroleum process streams listed in 40 CFR 710.46( b)( 1).

2) Specific chemical substances listed in 40 CFR 710.46( b)( 2)( iv) and in Appendix E.

3) Inorganic substances as defined in 40 CFR 710.46( b)( 3).

Parts I and II 29 Reporting Requirements Example What does this company submit?

CA Site  No report required AZ Site  Parts I and II NM Site  Parts I, II, and III Zero Pollution Chemical Company Annual Sales $ 50 Million CA Site 10,000 pounds pigment NM Site 350,000 pounds pigment AZ Site 30,000 pounds pigment 30 CRITERIA II Do you qualify as a small manufacturer?

( 710.49) Did you manufacture 25,000 pounds or more?

( 710.48) Do you qualify for additional exemptions?

( 710.50)

YES YOU MUST REPORT YES NO YOU DO NOT NEED TO REPORT NO NO Is the substance subject to a special action?

( 710.46)

YES NO YES 31 When do you report?

 Information for calendar year 2005 must be submitted to EPA during the submission period which is currently from August 25 to December 23, 2006 ( 40 CFR 710.53)

 Information must be submitted for all chemicals that are on the TSCA Inventory at the beginning of the submission period ( currently August 25, 2006), which are otherwise subject to reporting ( 40 CFR 710.45) 32 Summary  Form U must be submitted if ° The chemical is on the TSCA chemical substance inventory ° Manufactured or imported in an amount greater than 25,000 pounds  Exemptions ° Polymers, certain natural gas streams, microorganisms,

naturally occurring substances ° Small manufacturers ° Substance is manufactured as an impurity, by product, or nonisolated intermediate ° Substance is imported as a component of an article 33 Summary  Information that must be reported ° All reportable chemicals: chemical identification ( Part I)

and manufacturing information ( Part II)

° Chemicals produced in amounts greater than 300,000 lbs at a single site: processing and use information ( Part III) 34 Chapter 4: Completing Form U Franklyn Hall Chemical Engineering Branch Economics, Exposure and Technology Division Office of Pollution Prevention and Toxics IUR Public Meeting August 1, 2003 Washington, DC 35 Overview of Chapter 4  General requirements  Overview of completing Form U ° Part I  Company Information ° Part II  Manufacturing Information ° Part III  Processing and End Use Information  Discussion 36 General Requirements  Separate forms are required for each plant site ( 40 CFR 710.52)

 If you are reporting for more than one chemical, you should make the required number of copies of Parts II and III  Information can be submitted either on electronic disk ( not email) or a printed version of Form U ( 40 CFR 710.52) 37 SECTION I. CERTIFICATION Certification Statement: I hereby certify to the best of my knowledge and belief that ( 1) all information entered on this form is complete and accurate; and ( 2) the confidentiality statements at the end of this form are true and correct as to that information for which I have asserted a confidentiality claim.

1.1 Signature 1.2 Date signed 1.3 Name 1.4 Official Title Part I, Section I: Certification Must be signed by an authorized official of your company. 38 SECTION II. PARENT COMPANY AND TECHNICAL CONTACT INFORMATION 2.1 Parent Company Name 2.2 Parent Company Dun &

Bradstreet Number 2.3 Technical Contact Name 2.4 Technical Contact Telephone ( w/ Area Code) 2.5 Technical Contact Email Address Technical Contact Mailing Address 2.6 Technical Contact Address ( Line1)

2.7 Technical Contact Address ( Line 2)

2.8 City 2.9 State 2.10 Zip Code Part I, Section II:

Parent Company Information Make sure you enter the parent company Dun & Bradstreet number. 39 Part I, Section III:

Plant Site Identification SECTION III. PLANT SITE IDENTIFICATION 3.1 Plant Site Name 3.2 Plant Site Dun &

Bradstreet Number EPA Facility Identification Number ( for Agency Use Only) LEAVE BLANK 3.3 Street Address ( Line 1)

3.4 Street Address Line 2)

3.5 City 3.6 County/

Parish 3.7 State 3.8 Zip Code Make sure you enter the plant site Dun & Bradstreet number.

EPA will assign a facility identification number. 40 SECTION I. CHEMICAL IDENTIFICATION CBI*

1.1 Chemical Identifying Number 1.2 ID Code 1.3 Chemical Name Part II, Section I:

Chemical Identification  If you are reporting information for more than one chemical, make the necessary number of copies.

Use Chemical Abstracts Index/ Preferred names if available. Trade names may not be used except if the supplier will not disclose the specific identity of the trade name reactant. You cannot claim CBI for a substance on the nonconfidential Public Inventory.

The CAS Registry number is the preferred identifier. 41 Add the manufacture and import volumes together and report the total volume.

You cannot report an imported chemical as site limited.

EPA will assign a production volume range. You may claim the range CBI.

Part II, Section II:

Manufacturing Information ( cont'd)

SECTION II. MANUFACTURING INFORMATION CBI CBI a. Physical Form b. Percent of Production Volume in Each Physical Form 2.1 Company Information 2.2 Plant Site Identity* Check All That Apply CBI Percent CBI CBI 2.3 Site Limited ( Y/ N) 2.9 Dry Powder CBI 2.4 Activity ( M, I or both) 2.10 Pellets or Large Crystals CBI 2.5 Production Volume ( LB) 2.11 Water or Solvent Wet Solid CBI 2.6 Production Volume Range 2.12 Other Solid CBI 2.7 Number of Workers ( code) 2.13 Gas or Vapor CBI 2.8 Maximum Concentration ( code) 2.14 Liquid 42 Number of Workers  EPA requires that you report your estimate of the total number of workers " reasonably likely to be exposed"

( 40 CFR 710.52( c)( 3)( vi ))

Include exposures through any route of entry   inhalation,

ingestion, skin contact.

Include workers wearing personal protective equipment  Reasonably likely to be exposed   Exposure to a chemical substance under foreseeable conditions of manufacture, processing, distribution in commerce 43 Number of Workers  Use the range code listed in Table 4 3 of the IUR instruction manual Code Range of Workers Exposed W1 Fewer than 10 W2 At least 10 but fewer than 25 W3 At least 25 but fewer than 50 W4 At least 50 but fewer than 100 W5 At least 100 but fewer than 500 W6 At least 500 but fewer than 1,000 W7 At least 1,000 but fewer than 10,000 W8 10,000 or greater 44 Maximum Concentration  Report the maximum concentration, measured by weight, at the time the chemical is reacted on site or as it leaves the plant site ( 40 CFR 710.52( c)( 3)( vii))

 Round estimates to the nearest 1% using standard rounding procedures  Use the range code listed in Table 4 4 of the IUR instruction manual 45 Physical Form

Report all physical forms of the chemical at the time it is reacted or as it leaves your site and the percentage of production volume for each physical form ( 40 CFR 710.52( c)( 3)( viii)).

Round estimates to the nearest 10%. The sum of percentages must not add up to more than 100%.

a. Physical Form b. Percent of Production Volume in Each Physical Form Check All That Apply CBI Percent CBI 2.9 Dry Powder 2.10 Pellets or Large Crystals 2.11 Water or Solvent Wet Solid 2.12 Other Solid 2.13 Gas or Vapor 2.14 Liquid 46 Part III: Processing and Use Information  Complete Part III for chemical substances manufactured in quantities of 300,000 pounds or more ( 40 CFR 710.52( c)( 4))

 If you are reporting for more than one chemical, make the necessary number of copies  Report readily obtainable information about the industrial processing and use for each chemical substance:

° Sites under your control ° Sites that receive a reportable substance 47 Part III, Section I:

Industrial Processing and Use Report up to 10 unique combinations of the following codes:

Process or use; NAICS; and IFC SECTION I. INDUSTRIAL PROCESSING AND USE DATA N/ A a. Type of Process or Use b. ( 5 digit)

NAICS c. Industrial Function Category d. Percent Production Volume e. Number of Sites f. Number of Workers Code CBI Code CBI Code CBI Code CBI Code CBI Code CBI 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 48 SECTION I. INDUSTRIAL PROCESSING AND USE DATA N/ A a. Type of Process or Use b. ( 5 digit)

NAICS c. Industrial Function Category d. Percent Production Volume e. Number of Sites f. Number of Workers Code CBI Code CBI Code CBI Code CBI Code CBI Code CBI 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 Part III, Section I: Industrial Processing and Use ( cont'd)

Estimate the percent production volume,

number of sites, and number of workers for each unique combination of process or use, NAICS, and IFC codes. 49 Percentage of Production Volume  Round estimates to nearest 10%

( 40 CFR 710.52( c)( 4)( i))

 The total percentage production volume may add up to more than 100% since you are reporting for sites in your control and downstream sites 50 Number of Sites  Report an estimate of the total number of sites. Use the codes listed in Table 4 8 corresponding to the appropriate range.

 If you both manufacture and process or use a chemical, your site should be counted as both a manufacturing site in Part II and a processing or use site in Part III.

Codes Range S1 Less than 10 S2 From 10 to 25 S3 From 26 to 100 S4 From 101 to 250 S5 From 251 to 1,000 S6 From 1,001 to 10,000 S7 Greater than 10,000 51  Report an estimate of the total number of workers including those at sites not under your control. Use the codes listed in Table 4 9 corresponding to the appropriate range.

Number of Workers Code Range of Workers Exposed W1 Fewer than 10 W2 At least 10 but fewer than 25 W3 At least 25 but fewer than 50 W4 At least 50 but fewer than 100 W5 At least 100 but fewer than 500 W6 At least 500 but fewer than 1,000 W7 At least 1,000 but fewer than 10,000 W8 10,000 or greater 52 Part III, Section II: Commercial and Consumer End Use Commercial Use  Use of a chemical substance or mixture in a commercial enterprise providing saleable goods or a service.

Consumer Use  Use of a chemical substance that is directly, or as part of a mixture, sold to a consumer for their own use.

SECTION II. COMMERCIAL & CONSUMER END USE EXPOSURE RELATED DATA N/ A a. Commercial and Consumer Product Category b. Use in Children's Product c. Percent Production Volume associated with each category d. Maximum Concentration associated with each category Code CBI Y/ N/? CBI Percent CBI Code CBI 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 53 Consumer and Commercial Product Category Designate up to 10 commercial and consumer product categories defined in Table 4 10 of the instruction manual.

SECTION II. COMMERCIAL & CONSUMER END USE EXPOSURE RELATED DATA N/ A a. Commercial and Consumer Product Category b. Use in Children's Product c. Percent Production Volume associated with each category d. Maximum Concentration associated with each category Code CBI Y/ N/? CBI Percent CBI Code CBI 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 54 SECTION II. COMMERCIAL & CONSUMER END USE EXPOSURE RELATED DATA N/ A a. Commercial and Consumer Product Category b. Use in Children's Product c. Percent Production Volume associated with each category d. Maximum Concentration associated with each category Code CBI Y/ N/? CBI Percent CBI Code CBI 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 Use in Children's Products Determine if the chemical is present in or on any consumer product intended for use by children. 55 Percent Production Volume and Maximum Concentration Use same rules for reporting as in Part III Section I and Part II Section II.

SECTION II. COMMERCIAL & CONSUMER END USE EXPOSURE RELATED DATA N/ A a. Commercial and Consumer Product Category b. Use in Children's Product c. Percent Production Volume associated with each category d. Maximum Concentration associated with each category Code CBI Y/ N/? CBI Percent CBI Code CBI 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 56 Summary  Overview of completing Form U ° Part I  Company Information ° Part II  Manufacturing Information ° Part III  Processing and End Use Information  Unique combinations of Type of process or use, NAICS,

and IFC codes  Commercial and consumer use codes  Use in children's products  Rounding methods for percentages 57 57 Case Studies Franklyn Hall Chemical Engineering Branch Economics, Exposure and Technology Division Office of Pollution Prevention and Toxics IUR Public Meeting August 1, 2003 Washington, DC 58 Overview of Case Studies  Hydrate compounds ° Show how to complete Form U  Pigment ° Show how to complete Form U  Discussion 59 Case Study  Hydrate Compounds

Company D produces 800,000 lbs/ yr of copper sulfate pentahydrate ( CuSO 4° 5H 2 O) crystals at 93% purity. 560,000 lbs/ yr ( 70%) of the production volume is used for metal electroplating and 240,000 lbs/ yr ( 30%) is used as pesticides. This site employs 60 workers in the manufacturing area.

Key Points:

° Copper sulfate is an inorganic substance  Report for only Parts I and II ° Manufacture and use of pesticides is exempt from TSCA regulations, therefore the production volume associated with pesticide use should not be reported ° Report only the weight fraction of the anhydrous copper sulfate 560,000 lbs CuSO 4 5H 2 O yr 159.61 lbs CuSO 4 249.69 lbs CuSO 4 5H 2 O 357,970 lbs CuSO4   ×   = 60 SECTION II. MANUFACTURING INFORMATION CBI CBI a. Physical Form b. Percent of Production Volume in Each Physical Form 2.1 Company Information 2.2 Plant Site Identity* Check All That Apply CBI Percent CBI CBI 2.3 Site Limited ( Y/ N) 2.9 Dry Powder CBI 2.4 Activity ( M, I or both) 2.10 Pellets or Large Crystals CBI 2.5 Production Volume ( LB) 2.11 Water or Solvent Wet Solid CBI 2.6 Production Volume Range 2.12 Other Solid CBI 2.7 Number of Workers ( code) 2.13 Gas or Vapor CBI 2.8 Maximum Concentration ( code) 2.14 Liquid Case Study  Hydrate Compounds SECTION I. CHEMICAL IDENTIFICATION CBI*

1.1 Chemical Identifying Number 1.2 ID Code 1.3 Chemical Name 7758 98 7 C Copper ( II) Sulfate M N X 100 357,970 Amount of anhydrous form used for metal electroplating.

W4 At least 50 workers but fewer than 100 M5 Greater than 90% by weight 61 SECTION I. INDUSTRIAL PROCESSING AND USE DATA N/ A a. Type of Process or Use b. ( 5 digit)

NAICS c. Industrial Function Category d. % Production Volume e. Number of Sites f. Number of Workers Code CBI Code CBI Code CBI Code CBI Code CBI Code CBI 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 SECTION II. COMMERCIAL & CONSUMER END USE EXPOSURE RELATED DATA N/ A a. Commercial and Consumer Product Category b. Use in Children's Product c. Percent Production Volume associated with each category d. Maximum Concentration associated with each category Code CBI Y/ N? CBI Percent CBI Code CBI 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 Case Study  Hydrate Compounds PART III. PROCESSING AND USE INFORMATION Complete Part III, Section I and II only if the production volume noted in Part II, Section II. 2.6 is greater than or equal to 300,000 lb/ year X X 62 Case Study  Pigment Company F produces 300,000 lbs.

of powdered CI Pigment Yellow 100 at 100% concentration 500,000 lbs. of CI Pigment Yellow 100 is sold to 50 paint manufacturers as a coloring agent and is blended into paint formulations at concentrations of 1 30%

300,000 lbs. CI Pigment Yellow 100 sold to 6 sites that incorporate it into plastic articles at concentrations less than 1%. 300,000 lbs. is sold directly to the consumer as a component in paint 200,000 lbs. is sold to 10 toy manufacturers for painting wooden toys MANUFACTURING INDUSTRIAL PROCESSING AND USE COMMERICAL AND CONSUMER END USE Company F produces 500,000 lbs.

of powdered CI Pigment Yellow in liquid solution at 1  30%

concentration The plastic articles are sold directly for commercial and consumer use 63  Company F employs 25 workers to manufacture C. I.

Pigment Yellow 100 as a powder and an additional 20 workers to manufacture the liquid formulations.

 Company F estimates the following:

° 5 workers are exposed to C. I. Pigment Yellow 100 at each plastic manufacturing site;

° 5 workers are exposed at each paint manufacturing site;

and ° 5 workers are exposed at each wooden toy manufacturer site.

Case Study  Pigment 64 SECTION II. MANUFACTURING INFORMATION CBI CBI a. Physical Form b. Percent of Production Volume in Each Physical Form 2.1 Company Information 2.2 Plant Site Identity* Check All That Apply CBI Percent CBI CBI 2.3 Site Limited ( Y/ N) 2.9 Dry Powder CBI 2.4 Activity ( M, I or both) 2.10 Pellets or Large Crystals CBI 2.5 Production Volume ( LB) 2.11 Water or Solvent Wet Solid CBI 2.6 Production Volume Range 2.12 Other Solid CBI 2.7 Number of Workers ( code) 2.13 Gas or Vapor CBI 2.8 Maximum Concentration ( code) 2.14 Liquid Case Study  Pigment SECTION I. CHEMICAL IDENTIFICATION CBI*

1.1 Chemical Identifying Number 1.2 ID Code 1.3 Chemical Name C. I. Pigment Yellow 100 12225 21 7 C N M 60 X 40 X M5 Greater than 90% by weight W3 At least 25 workers but fewer than 50 800,000 Total amount of C. I. Pigment 100 produced 65 Case Study  Pigment PART III. PROCESSING AND USE INFORMATION Complete Part III, Section I and II only if the production volume noted in Part II, Section II. 2.6 is greater than or equal to 300,000 lb/ year SECTION I. INDUSTRIAL PROCESSING AND USE DATA N/ A a. Type of Process or Use b. ( 5 digit)

NAICS c. Industrial Function Category d. % Production Volume e. Number of Sites f. Number of Workers Code CBI Code CBI Code CBI Code CBI Code CBI Code CBI 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 SECTION II. COMMERCIAL & CONSUMER END USE EXPOSURE RELATED DATA N/ A a. Commercial and Consumer Product Category b. Use in Children's Product c. Percent Production Volume associated with each category d. Maximum Concentration associated with each category Code CBI Y/ N? CBI Percent CBI Code CBI 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 PA S1 40 W3 U08 32619 PF S3 60 W5 U08 32551 C15 40 M1 ?

C12 40 M2 N C18 30 M2 Y C15 = Rubber and plastics products C12 = Paints and coatings C18 = Wood and wood furniture M1 = Less than 1 wt%

M2 = From 1 wt% to 30 wt%

32619 = Other plastics product mfg.

32551 = Paint and coating mfg.

U08 = Coloring agents, pigments S1 = Less than 10 sites S3 = From 26 to 100 sites 66 Chapter 5:

Claiming Confidential Business Information ( CBI)

Fred Arnold Chemical Engineering Branch Economics, Exposure and Technology Division Office of Pollution Prevention and Toxics IUR Public Meeting August 1, 2003 Washington, DC 67 Overview of Chapter 5  Claiming CBI for:

° Chemical identity ° Manufacturing plant site identity ° PV and PV range  Example  Discussion 68 To claim confidentiality on Form U:

 Mark the appropriate boxes on Form U  An authorized official must sign Part I, Section I  Must file a written substantiation for:

° Chemical Identity ° Manufacturing Plant Site Identity  Production Volume and Production Volume Range  Note: CBI should not be submitted by email 69 Chemical Identity  Must file a separate written substantiation, signed and dated by an authorized official, for each chemical substance  Only assert a confidentiality claim if EPA treats the identity as confidential in the TSCA Inventory  Address all questions in Table 5 1 ° Harmful effects to competitive position ° Length of time information must remain confidential ° Patent and licensing status ° Publication in technical journals or trade literature ° Ability of others to analyze products or wastes 70 Manufacturing Plant Site Identity  Check the CBI box next to Block 2.2  Submit a written substantiation, signed and dated by an authorized official, answering the questions in Table 5 2.

° Has site information been linked with a chemical identity in any other reporting scheme? Ex. Through an MSDS.

° What harmful effect to your competitive advantage would result from the identity of the site and chemical substance?

 Upfront substantiation is not required for company information CBI claims ( Block 2.1) 71 SECTION II. MANUFACTURING INFORMATION CBI CBI a. Physical Form b. Percent of Production Volume in Each Physical Form 2.1 Company Information 2.2 Plant Site Identity* Check All That Apply CBI Percent CBI CBI 2.3 Site Limited ( Y/ N) 2.9 Dry Powder CBI 2.4 Activity ( M, I or both) 2.10 Pellets or Large Crystals CBI 2.5 Production Volume ( LB) 2.11 Water or Solvent Wet Solid CBI 2.6 Production Volume Range 2.12 Other Solid CBI 2.7 Number of Workers ( code) 2.13 Gas or Vapor CBI 2.8 Maximum Concentration ( code) 2.14 Liquid Company Identity versus Plant Site Identity Checking this box asserts a confidentiality claim for the link between your plant site and the chemical substance.

Checking this box asserts a confidentiality claim for the link between your company and the chemical substance. 72 Production Volume vs.

Production Volume Range  To claim production volume as CBI, check the CBI box next to Block 2.5  To claim production volume range as CBI, check the CBI box next to Block 2.6  EPA wants to provide as much information to the public as possible

If you claim the production volume as CBI, you are not required to claim the production volume range as CBI.

The production volume ranges listed in Table 4 2 of the Reporting Instructions are assigned by EPA 73 SECTION II. MANUFACTURING INFORMATION CBI CBI a. Physical Form b. Percent of Production Volume in Each Physical Form 2.1 Company Information 2.2 Plant Site Identity* Check All That Apply CBI Percent CBI CBI 2.3 Site Limited ( Y/ N) 2.9 Dry Powder CBI 2.4 Activity ( M, I or both) 2.10 Pellets or Large Crystals CBI 2.5 Production Volume ( LB) 2.11 Water or Solvent Wet Solid CBI 2.6 Production Volume Range 2.12 Other Solid CBI 2.7 Number of Workers ( code) 2.13 Gas or Vapor CBI 2.8 Maximum Concentration ( code) 2.14 Liquid SECTION I. CHEMICAL IDENTIFICATION CBI*

1.1 Chemical Identifying Number 1.2 ID Code 1.3 Chemical Name C. I. Pigment Yellow 100 12225 21 7 C N M 60 X 40 X M5 W3 800,000 Example: Claiming CBI on Form U X X X X X X X X X X X X X 74 PART III. PROCESSING AND USE INFORMATION Complete Part III, Section I and II only if the production volume noted in Part II, Section II. 2.6 is greater than or equal to 300,000 lb/ year SECTION I. INDUSTRIAL PROCESSING AND USE DATA N/ A a. Type of Process or Use b. ( 5 digit)

NAICS c. Industrial Function Category d. % Production Volume e. Number of Sites f. Number of Workers Code CBI Code CBI Code CBI Code CBI Code CBI Code CBI 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 SECTION II. COMMERCIAL & CONSUMER END USE EXPOSURE RELATED DATA N/ A a. Commercial and Consumer Product Category b. Use in Children's Product c. Percent Production Volume associated with each category d. Maximum Concentration associated with each category Code CBI Y/ N? CBI Percent CBI Code CBI 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 PA S1 40 W3 U08 32619 PF S3 60 W5 U08 32551 C15 40 M1 ?

C12 40 M2 N C18 30 M2 Y Example: Claiming CBI on Form U ( cont'd)

X X X X X X X X X X X X XX X XXX XX X XX X 75 Summary  Written substantiation for:

° Chemical identity ° Manufacturing plant site identity  Claiming CBI for:

° Company identity versus manufacturing site identity ° Production volume ° Production volume range 76 Amendments,

Partial Exemptions, and Other Future Activities Fred Arnold Chemical Engineering Branch Economics, Exposure and Technology Division Office of Pollution Prevention and Toxics IUR Public Meeting August 1, 2003 Washington, DC 77 Future Amendments to IUR  Change the reporting period ° 4 years  5 years  Change the record keeping period ° 5 years  6 years  Move the reporting period ° August  December  January  May  Clarify reporting requirements for importers 78 Developing a Procedure for Reviewing Partial Exemptions Draft procedure:

1 EPA will receive and validate the request 2 EPA will identify interest in IUR processing and use information for the chemical 3 EPA will notify potentially interested parties 4 An EPA workgroup will review the request and prepare a decision document for management review 5 EPA management will review the decision document 6 EPA will disseminate a decision 7 EPA will publish a proposed rule and request for comment 79 Developing a Procedure for Reviewing Partial Exemptions ( cont'd)

 EPA's decision to grant or deny a request will be based on the following considerations ( 40 CFR 710.46( b)( 2)( ii)):

A Production volume ( especially if > 300,000 pounds)

B Chemical and physical properties ( potential for persistence,

bioaccumulation, health and environmental effects)

C Information needs of EPA, other federal agencies, and the public D Availability of complementary risk screening information E Availability of comparable processing and use information F Whether the potential risks are adequately managed by EPA or other agency 80 Development of a Training Materials and Training Workshops  EPA will be developing a manual with examples to assist IUR reporters  EPA will conduct workshops to educate EPA regional personnel and industry on IUR reporting


[Federal Register: April 27, 2006 (Volume 71, Number 81)]
[Notices]
[Page 24881-24885]
[DOCID:fr27ap06-86]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53689; File No. SR-NYSE-2005-60]

Self-Regulatory Organizations; New York Stock Exchange, Inc. (n/
k/a New York Stock Exchange LLC); Notice of Filing of Proposed Rule
Change and Amendment No. 2 Thereto Relating to Proposed New Rules
342.24 (``Annual Branch Office Inspection'') and 342.25 (``Risk-Based
Surveillance and Branch Office Identification'') to Permit Member
Organizations to Classify Appropriate Branch Offices for Cyclical
Inspections and Proposed New Rule 342.26 (``Criteria for Inspection
Programs'')

April 20, 2006.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 15, 2005, the New York Stock Exchange, Inc.\3\ (n/k/a New
York Stock Exchange LLC) (``Exchange'') filed with the Securities and
Exchange Commission (``SEC'' or ``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the Exchange. The Exchange filed Amendment No. 2 to
the proposed rule change on April 7, 2006.\4\ The Commission is
publishing this notice to solicit comments on the proposed rule change,
as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Exchange is now known as the New York Stock Exchange
LLC. See Securities Exchange Act Release No. 53382 (February 27,
2006), 71 FR 11251 (March 6, 2006).
    \4\ See Amendment No. 2.
    The Exchange filed Amendment No. 1 to the proposed rule change
on October 31, 2005 and subsequently withdrew Amendment No. 1 on
April 7, 2006.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing with the Commission proposed new Exchange
Rules 342.24 (``Annual Branch Office Inspection'') and 342.25 (``Risk-
Based Surveillance and Branch Office Identification'') to permit
organizations to classify appropriate branch offices for cyclical
inspections and 342.26 (``Criteria for Inspection Programs''). The text
of the proposed rule change is available on the Exchange's Web site
(http://www.nyse.com), 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 proposed amendments would permit member organizations, with the
written approval of the Exchange, to exempt certain branch offices from
the general annual branch office inspection requirement of Exchange
Rule 342 (``Offices--Approval, Supervision and Control'') by utilizing
an Exchange-approved risk-based surveillance system.\5\ In addition,
the proposed amendments would re-position a portion of Exchange Rule
342's Interpretation into the rule text.
---------------------------------------------------------------------------

    \5\ Pursuant to discussions with Exchange staff, the Commission
made clarifying changes to the purpose section of the proposed rule
change. Telephone conversations between Stephen Kasprzak, Principal
Counsel, Rule and Interpretative Standards, Exchange, and Cyndi N.
Rodriguez, Special Counsel, and Kate Robbins, Attorney, Division of
Market Regulation (``Division''), Commission, on April 18, 2006.
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    The purpose of the proposed amendments is to provide member
organizations the flexibility to reduce

unnecessary inspections of low-risk branch offices with good compliance
records and to more fully concentrate surveillance and compliance
resources on those branch offices that would most likely benefit from
more frequent or more thorough on-site inspections. This would be
accomplished through the ongoing monitoring of prescribed branch office
criteria that would serve as effective indicators to distinguish those
offices that warrant annual inspection from those that might not.
Further, use of the prescribed criteria would enable member
organizations to more effectively direct attention to those regulatory
risk areas most likely in need of closer scrutiny during the course of
an on-site inspection. The proposed amendments would require that every
branch office, without exception, be inspected at least once every
three calendar years.
Background
    Exchange Rule 342 and its Interpretation currently require that
branch office inspections be conducted at least annually by member
organizations, unless it has been demonstrated to the satisfaction of
the Exchange that because of proximity, special reporting or
supervisory practice, other arrangements may satisfy the Rule's
requirements.\6\ Under this Interpretation, exemptions from the general
annual inspection requirement have been determined on case-by-case
basis, one branch office at a time. Recent years have brought to the
securities industry an increase in the number of smaller, so-called
``limited purpose offices,'' \7\ as well as many life-style changes
(such as increasing use of home offices). These business/demographic
changes, coupled with advances in the use of surveillance technology,
strongly suggest that it may be no longer practicable or necessary that
all branch offices warrant on-site annual inspections.
---------------------------------------------------------------------------

    \6\ Interpretation Handbook Rule 342(a),(b)[sol]03 (``Annual
Branch Office Inspection'').
    \7\ See Securities Exchange Act Release No. 52640 (October 19,
2005), 70 FR 61672 (October 25, 2005) (SR-NYSE-2004-51).
---------------------------------------------------------------------------

    The provision, noted above, allowing for a case-by-case exemption
from the annual inspection requirement is being retained. However, in
order to provide a more uniform standard to determine such exemptions,
and in recognition of available surveillance capabilities, proposed
Exchange Rule 342.24 would permit member organizations to submit to the
Exchange, for approval, policies and procedures outlining the use of a
risk-based surveillance system that the firm would utilize to identify
branch offices requiring less frequent than annual inspections. The
proposed amendments would require that all branch offices, without
exception, be inspected at least once every three calendar years.
Policies and Procedures
    Under the proposed amendments, a member organization seeking an
exemption from the standard annual inspection requirement would be
required to submit to the Exchange policies and procedures that reflect
their business models and product mix. In addition to the incorporation
of prescribed criteria to identify branch offices eligible for
exemption from an annual inspection cycle (discussed in detail below),
proposed Exchange Rule 342.25 would outline the policy and procedure
requirements that member organizations would be required to include in
any risk-based surveillance system acceptable to the Exchange pursuant
to the proposed amendments. Specifically, such policies and procedures
would be required to provide, at a minimum, for: (1) Flexibility to
initiate ``for-cause'' inspections, when circumstances warrant, of any
branch office that has been exempted from the standard annual
inspection cycle; (2) inspection on an unannounced basis of no less
than half of the branch offices inspected each year; and (3) a system
to allow employees to report compliance issues on a confidential basis
outside of the branch office chain of command.
    The Exchange believes that establishment of these policy and
procedure requirements would engender an environment conducive to
effective supervision and oversight by member organizations of both
branch offices subject to an annual inspection cycle as well as those
exempted from the standard cycle. For instance, the requirement that
``for-cause'' inspections be conducted when warranted makes clear that
branch offices that have been deemed exempt from the standard annual
inspection cycle are not exempt from ongoing surveillance and
supervision.\8\ Further, if the profile of an exempted office
subsequently changes (with respect to the size or scope of its business
activities or significant changes in other risk-based criteria), the
firm could reconsider the exemption. In instances where a firm rescinds
an exemption from annual branch office inspection due to regulatory
``red flags'' (e.g., registered representatives under special
supervision, receipt of multiple customer complaints, etc.), the
rescission should remain in effect until the factors or conditions that
prompted it have been thoroughly resolved.
---------------------------------------------------------------------------

    \8\ But see also section 15(b)(4)(E) of the Act, 15 U.S.C.
78o(b)(4)(E).
---------------------------------------------------------------------------

    The use of unannounced branch office inspections is an effective
means of enhancing the integrity of the annual inspection process in
that it encourages branch office personnel to properly view regulatory
compliance as an ongoing, day-to-day process.\9\
---------------------------------------------------------------------------

    \9\ The Division's Staff Legal Bulletin No. 17 (Remote Office
Supervision) noted that unannounced inspections may form part of an
effective supervisory system.
---------------------------------------------------------------------------

    The ability of employees located in branch offices to report
compliance issues on a confidential basis outside of the branch office
chain of command should foster an atmosphere conducive to reporting
issues of regulatory concern that may arise at the branch level, but
might not be reflected in the prescribed risk criteria. Knowledge of
such compliance issues would further assist firm personnel in making
``for-cause'' branch office inspection determinations.
Prescribed Criteria
    Certain prescribed criteria, applied to each branch office, would
be required of any acceptable risk-based surveillance system used to
determine which branch offices could be exempted from annual
inspection. The criteria, selected after extensive review by Exchange
staff and consultation with industry representatives, are effective
indicators to distinguish those offices that warrant annual inspection
from those that might not. Further, their inclusion directs attention
to the risks that most need to be addressed via on-site inspection. The
risk-based factors to be considered should include, but not necessarily
be limited to, the following:
    (1) Number of registered representatives;
    (2) A significant increase in the number of registered
representatives;
    (3) Number of customers and volume of transactions;
    (4) A significant increase in branch office revenues;
    (5) Incidence of concentrated securities positions in customers'
accounts;
    (6) Aggregate customer assets held;
    (7) Nature of the business conducted and the sales practice risk to
investors associated with the products sold, and product mix (e.g.,
options, equities, mutual funds, annuities, etc.);
    (8) Numbers of accounts serviced on a discretionary basis;
    (9) Compliance and regulatory history of the branch, including:

    (a) Registered representatives subject to special supervision by
the member organization, self-regulatory authorities, state regulatory
authorities or the SEC in years other than the previous or current
year;
    (b) Complaints, arbitrations, internal discipline, or prior
inspection findings; and
    (c) Persons subject to recent disciplinary actions by self-
regulatory authorities, state regulatory authorities or the SEC.
    (10) Operational factors, such as the number of errors and account
designation changes per registered representative;
    (11) Incidence of accommodation mailing addresses (e.g., post
office boxes and ``care of'' accounts);
    (12) Whether the branch office permits checks to be picked up by
customers or hand delivery of checks to customers;
    (13) Experience, function (producing or non-producing) and
compensation structure of branch office manager;
    (14) Branch offices recently opened or acquired; and
    (15) Changes in branch location, status or management personnel.
    The size of the office (as represented by the number of registered
representatives, the number of customers, the volume of transactions
and the aggregate customer assets held), as well as any significant
increase in the number of registered representatives or revenues, are
quantitative considerations that a firm should carefully assess before
granting an exemption from the annual inspection. Either individually
or in aggregate, these factors could indicate that the office's
activity is so extensive that, as a matter of good practice, it should
be inspected annually, even in the absence of any disciplinary or
operational ``red flags.'' In fact, as discussed below, certain
quantitative thresholds would, in and of themselves, disqualify offices
from an annual inspection exemption.
    The incidence of concentrated securities positions in customers'
accounts is included since highly concentrated positions, particularly
in securities not recommended by the firm, could be indicative of
unsuitable or highly leveraged activity. The nature of the business
conducted and the sales practice risk to investors associated with the
products sold and product mix of the branch office would be factors to
consider, as would the prevalence of certain types of investment
strategies. For example, a high level of low-priced equities (e.g.,
penny stocks) might be indicative of potential sales practices
problems. The numbers of accounts serviced on a discretionary basis
would be a factor given the heightened potential for abuse (e.g.,
churning or excessive trading) in such accounts.
    As with all risk-based criteria, the factors noted above should not
be viewed strictly in quantitative terms but should also be subjected
to qualitative analysis when determining whether to exempt a branch
from the annual inspection requirement. For example, while a branch
office's increase in revenue may simply be attributable to an increase
in the number of registered representatives it employs, it may also be
attributable to increased sales volume from existing customers of
registered representatives, which could be indicative of an
inappropriately aggressive sales effort.
    Also to be considered when conducting a branch office risk analysis
is the compliance and regulatory history of the branch office. Such
factors include:
    (1) Registered representatives subject to special supervision \10\
by the member organization, self-regulatory authorities, state
regulatory authorities or the SEC in years other than the previous or
current year;
---------------------------------------------------------------------------

    \10\ Indicia of special or heightened supervision include, but
are not limited to, limitation on the types of products (e.g., low
price or small cap) a broker is permitted to sell, restrictions or
elimination in a broker's discretion, restricting the broker to
soliciting only firm recommendations, and approval of all or certain
transactions prior to execution.
---------------------------------------------------------------------------

    (2) Complaints, arbitrations, internal discipline, or prior
inspection findings; and
    (3) Persons subject to recent disciplinary actions by self-
regulatory authorities, state regulatory authorities or the SEC.
    In analyzing the compliance and regulatory history of branch
offices, firms should, among other things, review the previous 12
months for investigations by any self-regulatory organization or the
SEC, customer complaints or complaint summaries, arbitrations and
lawsuits closed or pending, Form RE-3 filings submitted to the Exchange
pursuant to Exchange Rule 351(a), and internal investigation reports
filed pursuant to Exchange Rule 351(e).\11\
---------------------------------------------------------------------------

    \11\ See Exchange Information Memo No. 06-6, dated February 17,
2006. See also note 5, supra.
---------------------------------------------------------------------------

    It is expected that the review and analysis of recent branch office
regulatory history would have a considerable effect on exemption
determinations. For example, a significant disciplinary action at a
given branch office location would strongly suggest against a firm
granting an exception from an annual branch office inspection.
Moreover, an overall increase in the number of disciplinary actions
firm-wide should require the firm to review its overall inspection
cycle, particularly regarding inspections on less than an annual basis.
    As discussed further below, in instances where a branch office has
one or more registered representatives subject to special supervision,
it should subject that branch office to the annual inspection until
such time as the registered representatives are no longer subject to
such supervision. In instances where the conduct of a particular
registered representative or that of the office generally has been
egregious, the firm should take immediate and appropriate action and
consider administering on-site inspections on a more frequent than
annual basis.
    In addition, the proposed amendments prescribe certain key
operational factors to be considered when making determinations
regarding the frequency of branch office inspections. Specific
indicators include:
    (1) The number of errors and account designation changes per
registered representative (which can be indicative of unauthorized
trading);
    (2) The presence of ``accommodation'' mailing addresses (e.g., post
office boxes and ``care of'' accounts), which can be indicative of a
registered representative directing confirms, statements, and other
account-related materials to other than the customer; and
    (3) Whether the branch office permits checks to be picked up by
customers or hand delivers checks to customers (a practice that could
facilitate misappropriation practices).
    These criteria reflect the focus of recent amendments to Exchange
Rule 342 that subject certain sensitive regulatory functions to
internal control procedures in order to address potential lapses in
supervision at member organizations.\12\ The referenced operational
functions have been included due to their notable misuse, both by
registered representatives and branch office managers (BOMs), to the
disadvantage of customers. Accordingly, consistent with the general
supervision requirements of Exchange Rule 342, a firm should carefully
review such criteria, quantitatively and qualitatively, before granting
an exemption from an annual inspection.
---------------------------------------------------------------------------

    \12\ See Exchange Information Memo 04-38, dated July 26, 2004.
See also Securities Exchange Act Release No. 49882 (June 17, 2004),
69 FR 35108 (June 23, 2004) (SR-NYSE-2002-36).
---------------------------------------------------------------------------

    The prescribed criteria further include indicia relative to the
BOM, such as his

or her experience (whether it is sufficient for the nature and volume
of business required to be supervised), whether or not the BOM services
customer accounts (which could take time away or otherwise detract from
supervisory duties), and the BOM's compensation structure (e.g.,
whether he or she receives a substantial override from registered
representatives' revenue that could lead to a conflict of interest) or
whether the BOM's compensation is determined in part by the branch's
compliance record.
    Finally, the proposed amendments require member organizations to
consider potential problems associated with branch offices that have
been recently opened or acquired, as well as changes in branch office
location, status or management personnel. Where firms have acquired
branch offices through merger or acquisition, and where such branch
offices have had regulatory problems, firms should consider initially
subjecting such offices to annual inspections absent compelling reasons
to the contrary. Moreover changes in personnel (e.g., the resignation
or termination of a BOM) may warrant more diligent review before
exempting such branch office from the annual inspection cycle.
Branch Offices Not Eligible for Exemption
    Certain branch offices--given their size, the scope of supervisory
activities, or other factors--would not be deemed appropriate for an
exemption under the proposed amendments. For instance, offices
exercising supervision over other branch offices, those with 25 or more
registered individuals, and offices in the top 20% of production or
customer assets at the member organization would not be eligible for
exemption from the annual inspection requirement, nor would any branch
office with a registered representative subject to special supervision
in the current or immediately preceding year. Further, the proposed
amendments require that every branch office, without exception, be
inspected at least once every three calendar years.
Repositioning of Interpretation Text
    The proposed amendments would delete current Interpretation 342(a),
(b)[sol]03 in its entirety. However, the Interpretation text is largely
being repositioned into the Rule itself. For instance, the proposed
amendments retain: (1) The ability of a member organization to request,
on an office-by-office basis, an alternate arrangement to an annual
inspection; (2) the requirement that branch office inspections be
carried out by a person independent of the branch office in question
(i.e., not the Branch Office Manager, or any person who directly or
indirectly reports to such Manager, or any person to whom such Manager
directly reports); and (3) the requirement that internal controls over
certain prescribed areas be subject to independent testing and
verification.\13\ The amendments would also require that written
reports reflecting the results of the inspections must be maintained
for the longer of three years or until the next branch inspection.\14\
---------------------------------------------------------------------------

    \13\ See proposed Exchange Rule 342.26.
    \14\ See proposed Exchange Rule 342.24.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of section 6(b)(5) under the Act \15\ because it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The Exchange
believes that the proposed rule change is consistent with the Section
in that it should enable member organizations to better allocate and
focus their regulatory resources on their branches requiring annual
inspections.
---------------------------------------------------------------------------

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

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

    The Exchange believes that the proposed rule change will not impose
any burden on competition 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

    Comments were neither solicited nor received.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, as amended; or
    (B) Institute proceedings to determine whether the proposed rule
change, as amended, should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-NYSE-2005-60 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NYSE-2005-60. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments,

all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSE-2005-60 and should be submitted on or before May
18, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-6321 Filed 4-26-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 76, Number 21 (Tuesday, February 1, 2011)]
[Notices]
[Pages 5581-5582]
[FR Doc No: 2011-2097]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER11-2701-000]

Mountain View Power Partners IV, LLC; Supplemental Notice That
Initial Market-Based Rate Filing Includes Request for Blanket Section
204 Authorization

January 20, 2011.
    This is a supplemental notice in the above-referenced proceeding
Mountain View Power Partners IV, 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 February 9, 2011.
    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 should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a

document is added to a subscribed docket(s). For assistance with any
FERC Online service, please e-mail<EMAIL_ADDRESS>or call
(866) 208-3676 (toll free). For TTY, call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2011-2097 Filed 1-31-11; 8:45 am]
BILLING CODE 6717-01-P