impracticability and alternative measures in accordance with Sec.
112.7(d) is consistent with good engineering practice, including
consideration of applicable industry standards, and with the
requirements of this part.
    (ii) As described in paragraph (b)(3) of this section, the facility
owner or operator may not self-certify measures as described in Sec.
112.9(c)(6) for produced water containers and any associated piping and
appurtenances downstream from the container. Such measures must be
reviewed and certified, in writing, by a licensed Professional
Engineer, in accordance with Sec.  112.3(d)(1)(vi) or (vii), as
applicable.
    (iii) The review and certification by the Professional Engineer
under this paragraph is limited to the alternative method which
achieves equivalent environmental protection pursuant to Sec.
112.7(a)(2); to the impracticability determination and measures in lieu
of secondary containment pursuant to Sec.  112.7(d); or the measures
pursuant to Sec.  112.9(c)(6) for produced water containers and any
associated piping and appurtenances downstream from the container.

0
7. Amend Sec.  112.7 as follows:
0
a. By revising the first sentence in paragraph (a)(2);
0
b. By revising paragraphs (a)(3) introductory text and (a)(3)(i);
0
c. By revising paragraphs (c) introductory text and (c)(1);
0
d. By revising paragraph (g); and
0
e. By revising the heading to paragraph (h), paragraphs (h)(1) and
(h)(2).

Sec.  112.7  General requirements for Spill Prevention, Control, and
Countermeasure Plans.

* * * * *
    (a) * * *
    (2) Comply with all applicable requirements listed in this part.
Except as provided in Sec.  112.6, your Plan may deviate from the
requirements in paragraphs (g), (h)(2) and (3), and (i) of this section
and the requirements in subparts B and C of this part, except the
secondary containment requirements in paragraphs (c) and (h)(1) of this
section, and Sec. Sec.  112.8(c)(2), 112.8(c)(11), 112.9(c)(2),
112.9(d)(3), 112.10(c), 112.12(c)(2), and 112.12(c)(11), where
applicable to a specific facility, if you provide equivalent
environmental protection by some other means of spill prevention,
control, or countermeasure. * * *
* * * * *
    (3) Describe in your Plan the physical layout of the facility and
include a facility diagram, which must mark the location and contents
of each fixed oil storage container and the storage area where mobile
or portable containers are located. The facility diagram must identify
the location of and mark as ``exempt'' underground tanks that are
otherwise exempted from the requirements of this part under Sec.
112.1(d)(4), and produced water containers and any associated piping
and appurtenances downstream from the container, that are otherwise
exempted from the requirements of this part under Sec.  112.1(d)(12).
The facility diagram must also include all transfer stations and
connecting pipes, including intra-facility gathering lines that are
otherwise exempted from the requirements of this part under Sec.
112.1(d)(11). You must also address in your Plan:
    (i) The type of oil in each fixed container and its storage
capacity. For mobile or portable containers, either

provide the type of oil and storage capacity for each container or
provide an estimate of the potential number of mobile or portable
containers, the types of oil, and anticipated storage capacities;
* * * * *
    (c) Provide appropriate containment and/or diversionary structures
or equipment to prevent a discharge as described in Sec.  112.1(b),
except as provided in paragraph (k) of this section for qualified oil-
filled operational equipment, and except as provided in Sec.
112.9(d)(3) for flowlines and intra-facility gathering lines at an oil
production facility. The entire containment system, including walls and
floor, must be capable of containing oil and must be constructed so
that any discharge from a primary containment system, such as a tank,
will not escape the containment system before cleanup occurs. In
determining the method, design, and capacity for secondary containment,
you need only to address the typical failure mode, and the most likely
quantity of oil that would be discharged. Secondary containment may be
either active or passive in design. At a minimum, you must use one of
the following prevention systems or its equivalent:
    (1) For onshore facilities:
    (i) Dikes, berms, or retaining walls sufficiently impervious to
contain oil;
    (ii) Curbing or drip pans;
    (iii) Sumps and collection systems;
    (iv) Culverting, gutters, or other drainage systems;
    (v) Weirs, booms, or other barriers;
    (vi) Spill diversion ponds;
    (vii) Retention ponds; or
    (viii) Sorbent materials.
* * * * *
    (g) Security (excluding oil production facilities). Describe in
your Plan how you secure and control access to the oil handling,
processing and storage areas; secure master flow and drain valves;
prevent unauthorized access to starter controls on oil pumps; secure
out-of-service and loading/unloading connections of oil pipelines; and
address the appropriateness of security lighting to both prevent acts
of vandalism and assist in the discovery of oil discharges.
    (h) Facility tank car and tank truck loading/unloading rack
(excluding offshore facilities, farms, and oil production facilities).
    (1) Where loading/unloading rack drainage does not flow into a
catchment basin or treatment facility designed to handle discharges,
use a quick drainage system for tank car or tank truck loading/
unloading racks. You must design any containment system to hold at
least the maximum capacity of any single compartment of a tank car or
tank truck loaded or unloaded at the facility.
    (2) Provide an interlocked warning light or physical barrier
system, warning signs, wheel chocks or vehicle brake interlock system
in the area adjacent to a loading/unloading rack, to prevent vehicles
from departing before complete disconnection of flexible or fixed oil
transfer lines.
* * * * *

Subpart B--[Amended]

0
8. Amend Sec.  112.8 by revising the first sentence in paragraph (c)(2)
and revising paragraphs (c)(6) and (c)(11) to read as follows:

Sec.  112.8  Spill Prevention, Control, and Countermeasure Plan
requirements for onshore facilities (excluding oil production
facilities).

* * * * *
    (c) * * *
    (2) Construct all bulk storage tank installations (except mobile
refuelers and other non-transportation-related tank trucks) so that you
provide a secondary means of containment for the entire capacity of the
largest single container and sufficient freeboard to contain
precipitation.* * *
* * * * *
    (6) Test or inspect each aboveground container for integrity on a
regular schedule and whenever you make material repairs. You must
determine, in accordance with industry standards, the appropriate
qualifications for personnel performing tests and inspections, the
frequency and type of testing and inspections, which take into account
container size, configuration, and design (such as containers that are:
shop-built, field-erected, skid-mounted, elevated, equipped with a
liner, double-walled, or partially buried). Examples of these integrity
tests include, but are not limited to: visual inspection, hydrostatic
testing, radiographic testing, ultrasonic testing, acoustic emissions
testing, or other systems of non-destructive testing. You must keep
comparison records and you must also inspect the container's supports
and foundations. In addition, you must frequently inspect the outside
of the container for signs of deterioration, discharges, or
accumulation of oil inside diked areas. Records of inspections and
tests kept under usual and customary business practices satisfy the
recordkeeping requirements of this paragraph.
* * * * *
    (11) Position or locate mobile or portable oil storage containers
to prevent a discharge as described in Sec.  112.1(b). Except for
mobile refuelers and other non-transportation-related tank trucks, you
must furnish a secondary means of containment, such as a dike or
catchment basin, sufficient to contain the capacity of the largest
single compartment or container with sufficient freeboard to contain
precipitation.
* * * * *
0
9. Amend Sec.  112.9 as follows:
0
a. By revising the section heading;
0
b. By revising the introductory text;
0
c. By revising paragraphs (c)(2) and (c)(3);
0
d. By adding paragraphs (c)(5) and (c)(6);
0
e. By revising paragraph (d)(3); and
0
f. By adding paragraph (d)(4).

Sec.  112.9  Spill Prevention, Control, and Countermeasure Plan
Requirements for onshore oil production facilities (excluding drilling
and workover facilities).

    If you are the owner or operator of an onshore oil production
facility (excluding a drilling or workover facility), you must:
* * * * *
    (c) * * *
    (2) Except as described in paragraph (c)(5) of this section for
flow-through process vessels and paragraph (c)(6) of this section for
produced water containers and any associated piping and appurtenances
downstream from the container, construct all tank battery, separation,
and treating facility installations, so that you provide a secondary
means of containment for the entire capacity of the largest single
container and sufficient freeboard to contain precipitation. You must
safely confine drainage from undiked areas in a catchment basin or
holding pond.
    (3) Except as described in paragraph (c)(5) of this section for
flow-through process vessels and paragraph (c)(6) of this section for
produced water containers and any associated piping and appurtenances
downstream from the container, periodically and upon a regular schedule
visually inspect each container of oil for deterioration and
maintenance needs, including the foundation and support of each
container that is on or above the surface of the ground.
* * * * *
    (5) Flow-through process vessels. The owner or operator of a
facility with flow-through process vessels may choose to implement the
alternate requirements as described below in lieu of sized secondary
containment required in paragraphs (c)(2) and (c)(3) of this section.

    (i) Periodically and on a regular schedule visually inspect and/or
test flow-through process vessels and associated components (such as
dump valves) for leaks, corrosion, or other conditions that could lead
to a discharge as described in Sec.  112.1(b).
    (ii) Take corrective action or make repairs to flow-through process
vessels and any associated components as indicated by regularly
scheduled visual inspections, tests, or evidence of an oil discharge.
    (iii) Promptly remove or initiate actions to stabilize and
remediate any accumulations of oil discharges associated with flow-
through process vessels.
    (iv) If your facility discharges more than 1,000 U.S. gallons of
oil in a single discharge as described in Sec.  112.1(b), or discharges
more than 42 U.S. gallons of oil in each of two discharges as described
in Sec.  112.1(b) within any twelve month period, from flow-through
process vessels (excluding discharges that are the result of natural
disasters, acts of war, or terrorism) then you must, within six months
from the time the facility becomes subject to this paragraph, ensure
that all flow-through process vessels subject to this subpart comply
with Sec.  112.9(c)(2) and (c)(3).
    (6) Produced water containers.
    (i) A produced water container, and any associated piping and
appurtenances downstream from the container, are exempt from the
requirements of this part if a Professional Engineer certifies in
accordance with Sec.  112.3(d)(1)(vi) that no discharge from the
produced water container, including a complete loss of the capacity of
the container, could cause a discharge in quantities that may be
harmful, as described in part 110 of this chapter. This determination
for the container must be made in accordance with Sec.  112.1(d)(1)(i).
    (A) The SPCC Plan must include a description of the produced water
characteristics in the container, procedures, or maintenance required
to meet the standards of Part 110 and the owner or operator's annual
verifications prepared in accordance with Sec.  112.5.
    (B) If an exempt produced water container as described in paragraph
(c)(6)(i) of this section experiences a discharge as described in Sec.
112.1(b), then such container, piping, and appurtenances are ineligible
for this exemption and you must comply with all provisions under this
part applicable to the container, including Sec.  112.9(c)(2) and
(c)(3) within six months of the date of the discharge.
    (ii) For each container not exempted as described in paragraph
(c)(6)(i) of this section, comply with Sec.  112.9(c)(1) and (c)(4);
and Sec.  112.9(c)(2) and (c)(3), or:
    (A) Implement, on a regular schedule, a procedure for each produced
water container that is designed to separate the free-phase oil that
accumulates on the surface of the produced water. Include in the Plan a
description of the procedures, frequency, amount of free-phase oil
expected to be maintained inside the container, and a Professional
Engineer certification in accordance with Sec.  112.3(d)(1)(vii).
Maintain records of such events in accordance with Sec.  112.7(e).
Records kept under usual and customary business practices will suffice
for purposes of this paragraph. If this procedure is not implemented as
described in the Plan or no records are maintained, then you must
comply with Sec.  112.9(c)(2) and (c)(3).
    (B) On a regular schedule, visually inspect and/or test the
produced water container and associated piping for leaks, corrosion, or
other conditions that could lead to a discharge as described in Sec.
112.1(b) in accordance with good engineering practice.
    (C) Take corrective action or make repairs to the produced water
container and any associated piping as indicated by regularly scheduled
visual inspections, tests, or evidence of an oil discharge.
    (D) Promptly remove or initiate actions to stabilize and remediate
any accumulations of oil discharges associated with the produced water
container.
    (E) If your facility discharges more than 1,000 U.S. gallons of oil
in a single discharge as described in Sec.  112.1(b), or discharges
more than 42 U.S. gallons of oil in each of two discharges as described
in Sec.  112.1(b) within any twelve month period from a produced water
container subject to this subpart (excluding discharges that are the
result of natural disasters, acts of war, or terrorism) then you must,
within six months from the time the facility becomes subject to this
paragraph, ensure that all produced water containers subject to this
subpart comply with Sec.  112.9(c)(2) and (c)(3).
    (d) * * *
    (3) For flowlines and intra-facility gathering lines that are not
provided with secondary containment in accordance with Sec.  112.7(c),
unless you have submitted a response plan under Sec.  112.20, provide
in your Plan the following:
    (i) An oil spill contingency plan following the provisions of part
109 of this chapter.
    (ii) A written commitment of manpower, equipment, and materials
required to expeditiously control and remove any quantity of oil
discharged that might be harmful.
    (4) Prepare and implement a written program of flowline/intra-
facility gathering line maintenance. The maintenance program must
address your procedures to:
    (i) Ensure that flowlines and intra-facility gathering lines and
associated valves and equipment are compatible with the type of
production fluids, their potential corrosivity, volume, and pressure,
and other conditions expected in the operational environment.
    (ii) Visually inspect and/or test flowlines and intra-facility
gathering lines and associated appurtenances on a periodic and regular
schedule for leaks, oil discharges, corrosion, or other conditions that
could lead to a discharge as described in Sec.  112.1(b). For flowlines
and intra-facility gathering lines that are not provided with secondary
containment in accordance with Sec.  112.7(c), the frequency and type
of testing must allow for the implementation of a contingency plan as
described under part 109 of this chapter.
    (iii) Take corrective action or make repairs to any flowlines and
intra-facility gathering lines and associated appurtenances as
indicated by regularly scheduled visual inspections, tests, or evidence
of a discharge.
    (iv) Promptly remove or initiate actions to stabilize and remediate
any accumulations of oil discharges associated with flowlines, intra-
facility gathering lines, and associated appurtenances.

Subpart C--[Amended]

0
11. Amend Sec.  112.12 as follows:
0
a. By revising the introductory text;
0
b. By revising the first sentence in paragraph (c)(2); and
0
c. By revising paragraphs (c)(6) and (c)(11).

Sec.  112.12  Spill Prevention, Control, and Countermeasure Plan
Requirements.

    If you are the owner or operator of an onshore facility, you must:
* * * * *
    (c) * * *
    (2) Construct all bulk storage tank installations (except mobile
refuelers and other non-transportation-related tank trucks) so that you
provide a secondary means of containment for the entire capacity of the
largest single container and sufficient freeboard to contain
precipitation. * * *
* * * * *
    (6) Bulk storage container inspections.
    (i) Except for containers that meet the criteria provided in
paragraph (c)(6)(ii)

of this section, test or inspect each aboveground container for
integrity on a regular schedule and whenever you make material repairs.
You must determine, in accordance with industry standards, the
appropriate qualifications for personnel performing tests and
inspections, the frequency and type of testing and inspections, which
take into account container size, configuration, and design (such as
containers that are: shop-built, field-erected, skid-mounted, elevated,
equipped with a liner, double-walled, or partially buried). Examples of
these integrity tests include, but are not limited to: Visual
inspection, hydrostatic testing, radiographic testing, ultrasonic
testing, acoustic emissions testing, or other systems of non-
destructive testing. You must keep comparison records and you must also
inspect the container's supports and foundations. In addition, you must
frequently inspect the outside of the container for signs of
deterioration, discharges, or accumulation of oil inside diked areas.
Records of inspections and tests kept under usual and customary
business practices satisfy the recordkeeping requirements of this
paragraph.
    (ii) For bulk storage containers that are subject to 21 CFR part
110, are elevated, constructed of austenitic stainless steel, have no
external insulation, and are shop-fabricated, conduct formal visual
inspection on a regular schedule. In addition, you must frequently
inspect the outside of the container for signs of deterioration,
discharges, or accumulation of oil inside diked areas. You must
determine and document in the Plan the appropriate qualifications for
personnel performing tests and inspections. Records of inspections and
tests kept under usual and customary business practices satisfy the
recordkeeping requirements of this paragraph (c)(6).
* * * * *
    (11) Position or locate mobile or portable oil storage containers
to prevent a discharge as described in Sec.  112.1(b). Except for
mobile refuelers and other non-transportation-related tank trucks, you
must furnish a secondary means of containment, such as a dike or
catchment basin, sufficient to contain the capacity of the largest
single compartment or container with sufficient freeboard to contain
precipitation.
* * * * *

0
12. Add Appendix G to read as follows:

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[FR Doc. E8-28159 Filed 12-4-08; 8:45 am]

BILLING CODE 6560-50-C


[Federal Register Volume 82, Number 188 (Friday, September 29, 2017)]
[Rules and Regulations]
[Pages 45499-45500]
[FR Doc No: 2017-20823]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R02-OAR-2015-0498; FRL-9968-64-Region 2]

Approval and Promulgation of Implementation Plans; New York;
Regional Haze Five-Year Progress Report State Implementation Plan

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is approving New
York's regional haze progress report, submitted on June 16, 2015, as a
revision to its State Implementation Plan (SIP). New York's SIP
revision addresses requirements of the Clean Air Act and the EPA's
rules that require each state to submit periodic reports describing
progress towards reasonable progress goals established for regional
haze and a determination of the adequacy of the state's existing
regional haze SIP. The EPA is approving New York's determination that
the State's regional haze SIP is adequate to meet these reasonable
progress goals for the first implementation period which extends
through 2018.

DATES: This rule is effective on October 30, 2017.

ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-R02-OAR-2015-0498. All documents in the docket are
listed on the www.regulations.gov Web site. Although listed in the
index, some information is not publicly available, e.g., confidential
business information or other information whose disclosure is
restricted by statute. Certain other material, such as copyrighted
material, is not placed on the Internet and will be publicly available
only in hard copy form. Publicly available docket materials are
available through www.regulations.gov, or please contact the person
identified in the For Further Information Contact section for
additional availability information.

FOR FURTHER INFORMATION CONTACT: Kirk J. Wieber, Air Programs Branch,
Environmental Protection Agency, 290 Broadway, 25th Floor, New York,
New York 10278,<PHONE_NUMBER> or<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    Under the Regional Haze Rule,\1\ each state was required to submit
its first implementation plan addressing regional haze visibility
impairment to the EPA no later than December 17, 2007. See 40 CFR
51.308(b). New York submitted its regional haze plan on March 15, 2010.
On August 28, 2012, the EPA approved New York's regional haze SIP
submittal addressing the requirements of the first implementation
period for regional haze. 77 FR 51915 (Aug. 28, 2012).
---------------------------------------------------------------------------

    \1\ 40 CFR part 51, subpart P.
---------------------------------------------------------------------------

    Each state is also required to submit a progress report, in the
form of a SIP revision that evaluates progress towards the reasonable
progress goals (RPGs) for each mandatory Class I Federal area within
the state and for each mandatory Class I Federal area outside the state
which may be affected by emissions from within the state. See 40 CFR
51.308(g). Each state is also required to submit, at the same time as
the progress report, a determination of the adequacy of its existing
regional haze SIP. See 40 CFR 51.308(h). The first progress report was
due five years after submittal of the initial regional haze SIP.
    On June 16, 2015, New York submitted to the EPA, as a revision to
its SIP, a report on progress made towards the RPGs for Class I areas
outside the State that are affected by emissions from sources within
the State. There are no Class I areas in New York State. In its
progress report SIP, New York concludes the elements and strategies
relied on in its original regional haze SIP are sufficient for
neighboring states affected by emissions from New York to meet all
established RPGs. In a notice of proposed rulemaking (NPRM) published
on August 1, 2017 (82 FR 35738), the EPA proposed to approve New York's
progress report as satisfying the requirements of 40 CFR 51.308(g) and
51.308(h). No comments were received on the August 1, 2017 proposed
rulemaking.

II. Final Action

    EPA is finalizing approval of New York's Regional Haze Progress
Report SIP revision, submitted by New York on June 16, 2015, as meeting
the requirements of 40 CFR 51.308(g) and 51.308(h).

III. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this action merely approves state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides

that before a rule may take effect, the agency promulgating the rule
must submit a rule report, which includes a copy of the rule, to each
House of the Congress and to the Comptroller General of the United
States. EPA will submit a report containing this action and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by November 28, 2017. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. See section 307(b)(2).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Particulate
matter, Reporting and recordkeeping requirements, Sulfur oxides.

    Dated: September 19, 2017.
Catherine R. McCabe,
Acting Regional Administrator, Region 2.

    Part 52 chapter I, title 40 of the Code of Federal Regulations is
amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart HH--New York

0
2. In Sec.  52.1670(e) the table titled ``EPA APPROVED NEW YORK
NONREGULATORY AND QUASI-REGULATORY PROVISIONS'' is amended by adding
the entry ``Regional Haze Five-Year Progress Report'' at the end of the
table to read as follows:

Sec.  52.1670   Identification of plan.

* * * * *
    (e) * * *

                                           EPA-Approved New York Nonregulatory and Quasi-Regulatory Provisions
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Applicable geographic or
            SIP element                      nonattainment area             New York submittal date        EPA approval date           Explanation
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Regional Haze Five-Year Progress     State-wide........................  June 16, 2015................  September 29, 2017;     ........................
 Report.                                                                                [Insert Federal
                                                                                Register page
                                                                                citation].
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2017-20823 Filed 9-28-17; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 77, Number 71 (Thursday, April 12, 2012)]
[Notices]
[Pages 22053-22056]
[FR Doc No: 2012-8786]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66762; File No. SR-EDGX-2012-12]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Amendments to the EDGX Exchange, Inc. Fee Schedule

April 6, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 30, 2012 the EDGX Exchange, Inc. (the ``Exchange'' or the
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4 .
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its fees and rebates applicable to
Members \3\ of the Exchange pursuant to EDGX Rule 15.1(a) and (c). All
of the changes described herein are applicable to EDGX Members. The
text of the proposed rule change is available on the Exchange's
Internet Web site at http://www.directedge.com, at the Exchange's
principal office, and at the Public Reference Room of the Commission.
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    \3\ A Member is any registered broker or dealer, or any person
associated with a registered broker or dealer, that has been
admitted to membership in the Exchange.
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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 self-regulatory organization
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 self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to make a technical amendment to the
description of the Mega and Mini Tape B Tiers in footnote 1 to clarify
that these rebates ($0.0034 per share and $0.0030 per share,
respectively) are provided for liquidity added on EDGX in Tape B
Securities only.
    Flag E represents a customer internalization \4\ charge per side if
a Member inadvertently matches with itself. In order to provide
additional transparency to Members, Flag E is proposed to be bifurcated
into two flags and re-named to state ``Internalization'' instead of
``Customer Internalization'': Flag EA (internalization on the adding
liquidity side) and Flag ER (internalization on the removing

liquidity side). No change is proposed to the standard rate of $0.00035
per share. A conforming amendment is proposed to be made to the first
sentence of footnote 11 to make clear that either Flag EA or ER could
be yielded for internalization. In addition, the last sentence of
footnote 11 on the fee schedule provides that ``if a Member
internalizes more than 4% of their ADV on EDGX (added, removed, and
routed liquidity) and the Member, at a minimum, meets the criteria for
the Mega Tier rebate of $0.0032 per share in footnote 1, then the
Member's receives a rebate of $0.00015 per share.'' This tier is
proposed to be amended to state that in the latter situation, a Member
would receive the applicable rebate in footnote 1 of the fee schedule
for adding liquidity or would be charged the applicable removal rate in
footnote 1 or 12. This enables the Member to ascertain if they are on
the ``adding liquidity side'' or ``removing liquidity side'' for
purposes of internalization.
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    \4\ This occurs when two orders presented to the Exchange from
the same Member (i.e., MPID) are presented separately and not in a
paired manner, but nonetheless inadvertently match with one another.
Members are advised to consult Rule 12.2 respecting fictitious
trading.
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    The Exchange proposes to add footnote 13 to its fee schedule to
establish a new Investor Tier under which a Member can qualify for a
rebate of $0.0030 per share if they meet the following criteria: (i) On
a daily basis, measured monthly, posts an ADV of at least 8 million
shares on EDGX, where added flags are defined as B, HA, V, Y, MM, 3, or
4 (ii) have an ``added liquidity'' to ``removed liquidity'' ratio of at
least 70% where added flags are defined as B, HA, V, Y, MM, 3, or 4 \5\
and removal flags are defined as MT, N, W, PI, or 6; and (iii) have a
message-to-trade ratio of less than 4:1. The Exchange notes that the
message-to-trade ratio is calculated by including total messages as the
numerator (orders, cancels, and cancel/replace messages) and dividing
it by total executions.\6\ The Exchange also notes that any cancel/
replace message, regardless of whether it is a partial cancel, is
considered a new order.
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    \5\ The Exchange notes that the vast majority of posted
liquidity is displayed liquidity (Flags B, V, Y, 3, or 4) and the
volume posted from hidden liquidity (Flags HA and MM) is incidental.
    \6\ The Exchange notes that it counts only the first partial or
complete execution resulting from an order if it is filled in parts.
So, if a 1,000 share order results in three partial executions of
400 shares, 300 shares, and 300 shares, it counts only the first
execution of 400 shares toward the denominator. Thus, the Exchange
counts all fills against an order as one trade for purposes of
``total executions.''
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    The Exchange proposes to amend the description of Flag K in
reference to orders routed to the PSX to include the ROUE \7\ routing
strategy in addition to the ROUC routing strategy. The Exchange
proposes to continue to assess a charge of $0.0025 per share.
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    \7\ See Exchange Rule 11.9(b)(3).
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    Similarly, the Exchange proposes to amend the description of Flag
BY in reference to orders routed to the BATS BYX Exchange to include
the ROUE routing strategy in addition to the ROUC and ROBY routing
strategies. The Exchange proposes to continue to offer a rebate of
$0.0002 per share.
    The Exchange proposes to make technical amendments to the fee
schedule to: (i) substitute the phrase ``are defined as'' for
``include'' in footnote 12; (ii) replace Flag H with Flag HA in
footnote 12 since Flag HA replaced Flag H effective March 1, 2012; \8\
and (iii) remove the word ``customer'' in the description of Flags 5
and footnote 11 so that it now would read ``Internalization.''
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    \8\ See Securities Exchange Act Release No. 66558 (March 9,
2012), 77 FR 15432 (March 15, 2012) (SR-EDGX-2012-06).
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    The Exchange proposes to implement these amendments to its fee
schedule on April 1, 2012.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent
with the objectives of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(4),\10\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other persons using its
facilities.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed technical amendment to the
Mini and Mega Tape B Tiers adds additional transparency to its fee
schedule for investors as it clarifies that the tiered rate is only
applicable as to Tape B securities. The Exchange believes that the
proposed technical amendment to delete Flag E and replace it with Flags
EA and ER promotes market transparency and improves investor protection
by adding additional transparency to its fee schedule by more precisely
delineating for Members whether they are ``adders of liquidity'' or
``removers of liquidity'' for purposes of paying the internalization
fee. The Exchange also believes that the proposal is non-discriminatory
because it applies to all Members.
    Finally, the internalization rebate is equitable in that it is in
line with the EDGX fee structure \11\ which currently has a maker/taker
spread of $0.0006 per share (the standard rebate to add liquidity on
EDGX is $0.0023 per share, while the standard fee to remove liquidity
is $0.0029 per share). EDGX also has a variety of tiered rebates
ranging from $0.0023-$0.0034 per share, which makes its maker/taker
spreads range from $.0006 (standard add--standard removal rate), -
$.0001 (standard removal rate--Super Tier rebate), -$0.0002 (standard
removal rate--Ultra Tier rebate), -$0.0003 (standard removal rate--Mega
Tier rebate of $0.0032), and -$.0005 (standard removal rate--Mega Tier
rebate of $0.0034 per share). As a result of the internalization
rebate, Members who internalized and met the criteria to satisfy the
Mega Tier and the volume threshold of 4% of their ADV on EDGX would be
rebated $0.00032 per share per side of an execution (the applicable
rebate in footnote 1 for adding liquidity) and be charged $0.0029 per
share per side (the applicable removal rate in footnote 1, in this
case). This makes the total net rebate equal $0.0003 per share, which
would be an internalization rate that is no more favorable than the
prevailing maker/taker spread by satisfying the Mega Tier rebate of
$0.0032 ($-0.0003).
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    \11\ In SR-EDGX-2011-13 (April 29, 2011), the Exchange
represented that it ``will work promptly to ensure that the
internalization fee is no more favorable than each prevailing maker/
taker spread.''
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    The Exchange believes that the Investor Tier is designed to provide
for the equitable allocation of reasonable dues, fees and other charges
among its Members and other persons using its facilities as it rewards
Members with order flow characteristics that contribute meaningfully to
price discovery on the Exchange. In other words, Members that primarily
post liquidity and provide longer duration orders are more valuable
Members to the Exchange and the marketplace in terms of liquidity
provision. The EDGX Investor Tier also encourages Members to primarily
add liquidity in order to satisfy the ``added liquidity'' to ``removed
liquidity'' ratio of at least 70%. Such increased volume increases
potential revenue to the Exchange, and would allow the Exchange to
spread its administrative and infrastructure costs over a greater
number of shares, leading to lower per share costs. These lower per
share costs would allow the Exchange to pass on the savings to Members
in the form of higher rebates. The increased liquidity also benefits
all investors by deepening EDGX's liquidity pool, offering additional
flexibility for all investors to enjoy cost savings, supporting the
quality of price discovery, promoting market transparency and improving
investor protection. Volume-based rebates such as the ones proposed
herein have been

widely adopted in the cash equities markets, and are equitable because
they are open to all Members on an equal basis and provide discounts
that are reasonably related to the value to an exchange's market
quality associated with higher levels of market activity, such as
higher levels of liquidity provision and introduction of higher volumes
of orders into the price and volume discovery processes.
    In addition, the rebate is also reasonable in that other exchanges
likewise employ similar pricing mechanisms. For example, NASDAQ \12\
and NYSE Arca \13\ offer investor support programs and investor tiers,
respectively. Such programs reward liquidity provision attributes,
encourage price discovery and market transparency by encouraging growth
in liquidity over a defined baseline, and encourage a low cancellation
rate on liquidity-providing orders. EDGX's Investor Tier is similar to
NASDAQ's/NYSE Arca's programs in they both encourage efficient
liquidity provision. It is similar to NASDAQ's Investor Support Program
in that for NASDAQ members to qualify, among a firm's liquidity-
providing orders, it must maintain a ratio of ``orders'' to ``orders
executed'' of less than ten to one (i.e., at least one out of every ten
liquidity-providing orders submitted must be executed rather than
cancelled). Similarly, NYSE Arca's investor tiers require its members
to maintain a ratio of cancelled orders to total orders of less than
30% and maintain a ratio of executed liquidity adding volume to total
volume of greater than 80%, among other criteria. EDGX's Investor Tier
is similar to NYSE Arca's investor tiers in that like NYSE Arca's
investor tiers, the Exchange's goal is to incentivize Members to
maintain low cancellation rates and provide liquidity that supports the
quality of price discovery and promotes market transparency. In
addition, similar to the investor tiers of NYSE Arca, EDGX's Investor
Tier ``reward[s] providers whose orders stay on the [b]ook and do not
rapidly cancel a large portion of their orders placed, which makes the
price discovery process more efficient and results in higher fill
rates, greater depth and lower volatility. It serves to encourage
Members to post orders that are more likely to be executed.'' \14\
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    \12\ See NASDAQ Rule 7014. Similarly, NASDAQ established an
Investor Support Program (``ISP'') targeting retail and
institutional investor orders where firms receive a higher rebate if
they meet all of the following criteria: 1) Add at least 10 million
shares of liquidity per day via ISP-designated ports; 2) Maintain a
ratio of orders-to-orders executed of less than 10 to 1 (counting
only liquidity-providing orders and excluding certain order types)
on ISP-designated ports; 3) Exceed the firm's August 2010/2011
``baseline'' volume of liquidity added across all the firm's ports.
For a detailed description of the Investor Support Program as
originally implemented, see Securities Exchange Act Release No.
63270 (November 8, 2010), 75 FR 69489 (November 12, 2010) (NASDAQ-
2010-141) (notice of filing and immediate effectiveness) (the ``ISP
Filing''). See also Securities Exchange Act Release Nos. 63414
(December 2, 2010), 75 FR 76505 (December 8, 2010) (NASDAQ-2010-153)
(notice of filing and immediate effectiveness); 63628 (January 3,
2011), 76 FR 1201 (January 7, 2011) (NASDAQ-2010-154) (notice of
filing and immediate effectiveness); 63891 (February 11, 2011), 76
FR 9384 (February 17, 2011) (NASDAQ-2011-022) (notice of filing and
immediate effectiveness); and 64050 (March 8, 2011), 76 FR 13694
March 14, 2011) (SR-NASDAQ-2011-034). See also Securities Exchange
Act Release No. 65717 (November 9, 2011), 76 FR 70784 (November 15,
2011) (SR-NASDAQ-2011-150).
    \13\ NYSE Arca also implemented investor tiers where they allow
Members to earn a credit of $0.0032 per share for executed orders
that provide liquidity to the Book for Tape A, Tape B and Tape C
securities when they meet all of the following criteria on a monthly
basis: 1) Maintain a ratio of cancelled orders to total orders of
less than 30%; 2) Maintain a ratio of executed liquidity adding
volume to total volume of greater than 80%; and 3) Firms must add
liquidity that represents 0.45% or more of the total U.S. average
daily consolidated share volume (``ADV'') per month (volume on days
when the market closes early is excluded from the calculation of
ADV). See Securities Exchange Act Release No. 64593 (June 3, 2011),
76 FR 33380 (June 8, 2011) (SR-NYSEArca-2011-34); Securities
Exchange Act Release No. 66115 (January 6, 2012), 77 FR 1969
(January 12, 2012) (SR-NYSEArca-2011-101) (notice of filing and
immediate effectiveness of a proposed rule change replacing
numerical thresholds with percentage thresholds for the Investor
Tiers' volume requirements). See also Securities Exchange Act
Release No. 66378 (February 10, 2012), 77 FR 9278 (February 16,
2012) (SR-NYSEArca-2012-13).
    \14\ See Securities Exchange Act Release No. 64593 (June 3,
2011), 76 FR 33380 (June 8, 2011) (SR-NYSEArca-2011-34).
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    The Exchange proposes to amend the description of Flag K in
reference to orders routed to the PSX to include the ROUE routing
strategy in addition to the ROUC routing strategy. The Exchange
proposes to continue to assess a charge of $0.0025 per share. The
Exchange believes that by including the ROUE routing strategy in the
description of Flag K, the Exchange is providing additional
transparency to the fee schedule by broadening that flag's
applicability to several routing strategies. This encourages Members to
utilize the Exchange to route to various destinations, which results in
a lower overall routed rate for Members and allows the Exchange to pass
on the savings it receives to the Exchange's Members. The Exchange
believes that the proposed rebate is non-discriminatory in that it
applies uniformly to all Members.
    Similarly, the Exchange proposes to amend the description of Flag
BY in reference to orders routed to the BATS BYX Exchange to include
the ROUE routing strategy in addition to the ROUC and ROBY routing
strategies. The Exchange proposes to continue to offer a rebate of
$0.0002 per share. The Exchange believes that by including the ROUE
routing strategy in the description of Flag BY the Exchange is
providing additional transparency to the fee schedule by broadening
that flag's applicability to several routing strategies. This
encourages Members to utilize the Exchange to route to various
destinations, which results in a lower overall routed rate for Members
and allows the Exchange to pass on the savings it receives to the
Exchange's Members. The Exchange believes that the proposed rebate is
non-discriminatory in that it applies uniformly to all Members.
    The Exchange also notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive. The proposed rule change reflects a competitive pricing
structure designed to incent market participants to direct their order
flow to the Exchange. The Exchange believes that the proposed rates are
equitable and non-discriminatory in that they apply uniformly to all
Members. The Exchange believes the fees and credits remain competitive
with those charged by other venues and therefore continue to be
reasonable and equitably allocated to Members.

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

    The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3) of the Act \15\ and Rule 19b-4(f)(2) \16\ thereunder. At any
time within 60 days of the filing of such proposed rule

change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 19b-4(f)(2) [sic].
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-EDGX-2012-12 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-EDGX-2012-12. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; 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-EDGX-2012-12 and should be
submitted on or before May 3, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-8786 Filed 4-11-12; 8:45 am]
BILLING CODE 8011-01-P