[Federal Register: March 31, 2009 (Volume 74, Number 60)]
[Notices]
[Page 14598-14604]
[DOCID:fr31mr09-147]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-28678; File No. 812-13588]

MetLife Insurance Company of Connecticut, et al.

March 25, 2009.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application for an order pursuant to Section 26(c) of
the Investment Company Act of 1940 (the ``Act'') approving certain
substitutions of securities and an order of exemption pursuant to
Section 17(b) of the Act from Section 17(a) of the Act.

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

Applicants: MetLife Insurance Company of Connecticut (``MetLife of
CT''), MetLife of CT Separate Account Eleven for Variable Annuities
(``Separate Account Eleven''), MetLife of CT Separate Account QPN for
Variable Annuities (``Separate Account QPN''), MetLife of CT Fund UL
for Variable Life Insurance (``Fund UL''), MetLife of CT Fund UL III
for Variable Life Insurance (``Fund UL III''), MetLife Investors
Insurance Company (``MetLife Investors''), MetLife Investors Variable
Annuity Account One (``VA Account One''), MetLife Investors Variable
Annuity Account Five (``VA Account Five''), First MetLife Investors
Insurance Company (``First MetLife Investors''), First MetLife
Investors Variable Annuity Account One (``First VA Account One''),
MetLife Investors USA Insurance Company (``MetLife Investors USA''),
MetLife Investors USA Separate Account A (``Separate Account A''),
Metropolitan Life Insurance Company (``MetLife''), Metropolitan Life
Variable Annuity Separate Account I (``Separate Account I''),
Metropolitan Life Variable Annuity Separate Account II (``Separate
Account II''), General American Life Insurance Company (``General
American'') (together with MetLife of CT, MetLife Investors, First
MetLife Investors, MetLife Investors USA and MetLife, the ``Insurance
Companies''), General American Separate Account Seven (``GA Separate
Account Seven'') (together with Separate Account Eleven, Separate
Account QPN, Fund UL, Fund UL III, VA Account One, VA Account Five,
First VA Account One, Separate Account A, Separate Account I, and
Separate Account II, the ``Separate Accounts''), Met Investors Series
Trust (``MIST'') and Metropolitan Series Fund, Inc. (``Met Series
Fund''). The Insurance Companies and the Separate Accounts are referred
to as the ``Substitution Applicants.'' The Insurance Companies, the
Separate Accounts and the Investment Companies are referred to as the
``Section 17 Applicants.''

Summary of Application: Applicants seek an order approving the
substitution of certain series of the Investment Companies for shares
of series of other registered investment companies held by the Separate
Accounts to fund certain group and individual variable annuity
contracts and variable life insurance policies issued by the Insurance
Companies (collectively, the ``Contracts''). The Section 17 Applicants
seek an order pursuant to Section 17(b) of the Act to permit certain
in-kind transactions in connection with certain of the Substitutions.

Filing Date: The application was filed on October 21, 2008, and an
amended and restated application was filed on March 13, 2009 and March
24, 2009.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Secretary of the
Commission and serving Applicants with a copy of the request personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on April 17, 2009, and should be accompanied by proof of
service on Applicants, in the form of an affidavit or for lawyers a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request and the issued contested.
Persons may request notification of a hearing by writing to the
Secretary of the Commission.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090.

Applicants c/o Paul G. Cellupica, Chief Counsel--Securities Regulation
and Corporate Services, MetLife Group, One MetLife Plaza, 27-01 Queens
Plaza North, Long Island City, NY 11101 and Robert N. Hickey, Esq.,
Sullivan & Worcester LLP, 1666 K Street, NW., Washington, DC 20006.

FOR FURTHER INFORMATION CONTACT: Alison T. White, Senior Counsel, or
Joyce M. Pickholz, Branch Chief, Office of Insurance Products, Division
of Investment Management, at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee from
the Public Reference Branch of the Commission, 100 F Street, NE.,
Washington, DC 20549<PHONE_NUMBER>).

Applicants' Representations

    1. MetLife of CT is a stock life insurance company organized in
1863 under the laws of Connecticut. MetLife Investors is a stock life
insurance company organized on August 17, 1981 under the laws of
Missouri. First MetLife Investors is a stock life insurance company
organized on December 31, 1992 under the laws of New York. MetLife
Investors USA is a stock life insurance company organized on September
13, 1960 under the laws of Delaware. MetLife is a stock life insurance
company organized in 1868 under the laws of New York. General American
is a stock life insurance company organized in 1933 under the laws of
Missouri.
    2. Separate Account Eleven, Fund UL, Fund UL III, VA Account One,
VA Account Five, First VA Account One, Separate Account A, Separate
Account I and Separate Account II are registered under the Act as unit
investment trusts for the purpose of funding the Contracts. Security
interests under the Contracts have been registered under the Securities
Act of 1933.
    3. Separate Account QPN is exempt from registration under the Act.
Security interests under the Contracts have been registered under the
Securities Act of 1933.
    4. GA Separate Account Seven serves as separate account funding
vehicles for certain Contracts that are exempt from registration under
Section 4(2) of the Securities Act of 1933 and Regulation D thereunder.
    5. MIST and Met Series Fund are each registered under the Act as
open-end management investment companies of the series type, and their
securities are registered under the Securities Act of 1933. Met
Investors Advisory, LLC and Metlife Advisers, LLC serve as investment
adviser to MIST and Met Series Fund, respectively.
    6. The annuity contracts permit the Insurance Companies to
substitute shares of one fund with shares of another, including a fund
of a different registered investment company.
    7. Each Insurance Company, on its behalf and on behalf of the
Separate Accounts proposes to make certain substitutions of shares of 9
funds (the ``Existing Funds'') held in sub-accounts of its respective
Separate Accounts for certain series (the ``Replacement Funds'') of
MIST and Met Series Fund.
    8. The proposed substitutions are as follows: shares of MetLife
Moderate Strategy Portfolio for shares of DWS Conservative Allocation
VIP; shares of MetLife Growth Strategy Portfolio for shares of DWS
Growth Allocation VIP; shares of MetLife Balanced Strategy Portfolio
for shares of DWS Moderate Allocation VIP; shares of Janus Forty
Portfolio for shares of Janus (Aspen Series) Forty Portfolio; shares of
MetLife Stock Index Portfolio for shares of Legg Mason Partners
Variable Equity Index Portfolio; shares of PIMCO Total Return Portfolio
for shares of PIMCO (VIT) Total Return Portfolio; shares of Pioneer
Strategic Income Portfolio for shares of Pioneer Strategic Income VCT
Portfolio; shares of BlackRock Bond Income Portfolio for shares of UIF
Core Plus Fixed Income Portfolio; shares of Van Kampen Comstock
Portfolio for shares of Van Kampen LIT Comstock Portfolio.
    9. The following is a summary of the investment objectives and
policies of each Existing Fund and its corresponding Replacement Fund.
Additional information including asset sizes, risk factors and
comparative performance history for each Existing Fund and Replacement
Fund can be found in the Application.

------------------------------------------------------------------------
             Existing fund                       Replacement fund
------------------------------------------------------------------------
DWS Conservative Allocation VIP--seeks   MetLife Moderate Strategy
 a balance of current income and long-    Portfolio--seeks high total
 term growth of capital with an           return in the form of income
 emphasis on current income. The          and growth of capital, with a
 Portfolio invests in other DWS VIP       greater emphasis on income.
 portfolios. The Portfolio's target       The Portfolio invests in a
 allocation is 60% in underlying          diversified group of
 portfolios which invest primarily in     affiliated underlying funds.
 fixed-income securities and 40% in       The Portfolio normally invests
 underlying portfolios which invest       in accordance with targeted
 primarily in equity securities.          allocations of 50% to equity
                                          securities and 50% to fixed
                                          income securities. Changes
                                          between these asset classes
                                          will be in the range of plus
                                          or minus 10%.
DWS Growth Allocation VIP--seeks long-   MetLife Growth Strategy
 term growth of capital. The Portfolio    Portfolio--seeks growth of
 invests in other DWS VIP portfolios.     capital. The Portfolio invests
 The Portfolio's target allocation is     in a diversified group of
 25% in underlying portfolios which       affiliated underlying funds.
 invest primarily in fixed income         The Portfolio normally invests
 securities, and 75% in underlying        in accordance with targeted
 portfolios which invest primarily in     allocations of 85% to equity
 equity securities.                       securities and 15% to fixed
                                          income securities. Changes
                                          between these asset classes
                                          will be in the range of plus
                                          or minus 10%.
DWS Moderate Allocation VIP--seeks a     MetLife Balanced Strategy
 balance of long-term growth of capital   Portfolio--seeks a balance
 and current income with an emphasis on   between a high level of
 growth of capital. The Portfolio         current income and growth of
 invests in other DWS VIP portfolios.     capital with a greater
 The Portfolio's target allocation is     emphasis on growth of capital.
 40% in underlying portfolios which       The Portfolio invests in a
 invest primarily in fixed income         diversified group of
 securities and 60% in underlying         affiliated underlying funds.
 portfolios which invest primarily in     The Portfolio normally
 equity securities.                       primarily invests in
                                          accordance with targeted
                                          allocations of 65% to equity
                                          securities and 35% to fixed
                                          income securities. Changes
                                          between these asset classes
                                          will be in the range of plus
                                          or minus 10%.
Janus (Aspen Series) Forty Portfolio--   Janus Forty Portfolio--seeks
 seeks long-term growth of capital. The   long-term growth of capital.
 Portfolio normally invests primarily     The Portfolio normally invests
 in a core group of 20-40 common stocks   primarily in a core group of
 selected for their growth potential.     20-40 common stocks selected
                                          for their growth potential.
Legg Mason Partners Variable Equity      MetLife Stock Index Portfolio--
 Index Portfolio--seeks investment        seeks to equal the performance
 results that, before expenses,           of the S&P 500 Index (before
 correspond to the price and yield        expenses).
 performance of the S&P 500 Index.
UIF Core Plus Fixed Income Portfolio--   BlackRock Bond Income
 seeks above-average total return over    Portfolio--seeks a competitive
 a market cycle of three to five years    total return primarily from
 by investing primarily in a              investing in fixed-income
 diversified portfolio of fixed income    securities.
 securities.

PIMCO (VIT) Total Return Portfolio--     PIMCO Total Return Portfolio--
 seeks maximum total return, consistent   seeks maximum total return,
 with preservation of capital and         consistent with preservation
 prudent investment management.           of capital and prudent
                                          investment management.
Pioneer Strategic Income VCT Portfolio-  Pioneer Strategic Income
 seeks a high level of current income.    Portfolio--seeks a high level
 Normally, the Portfolio invests at       of current income. The
 least 80% of its assets in debt          Portfolio invests, under
 securities.                              normal circumstances at least
                                          80% of its assets in debt
                                          securities.
Van Kampen LIT Comstock Portfolio--      Van Kampen Comstock Portfolio--
 seeks capital growth and income.         seeks capital growth and
 Normally, the Portfolio invests at       income. Normally, the
 least 80% of its assets in common        Portfolio invests at least 80%
 stocks.                                  of its assets in common
                                          stocks.
------------------------------------------------------------------------

    10. The management fees, 12b-1 fees (if applicable), other expenses
and total operating expenses for each Existing and Replacement Fund are
as follows:

----------------------------------------------------------------------------------------------------------------
                                                Management                  Other        Waiver/        Total
                                                   fees      12b-1 fees    expenses   Reimbursement    expenses
                                                (percent)    (percent)    (percent)     (percent)     (percent)
----------------------------------------------------------------------------------------------------------------
Replacement Fund: MetLife Moderate Strategy            .07          .25          .65  .............          .97
 Portfolio (Class B).........................
Existing Fund: DWS Conservative Allocation             .07          .25         1.01  .............         1.33
 VIP (Class B)...............................
Replacement Fund: MetLife Growth Strategy              .06          .25          .72  .............         1.03
 Portfolio (Class B).........................
Existing Fund: DWS Growth Allocation VIP               .07          .25         1.00  .............         1.32
 (Class B)...................................
Replacement Fund: MetLife Balanced Strategy            .06          .25          .69  .............         1.00
 Portfolio (Class B).........................
Existing Fund: DWS Moderate Allocation VIP             .07          .25          .98  .............         1.30
 (Class B)...................................
Replacement Fund: Janus Forty Portfolio                .65          .15          .06  .............          .86
 (Class E)...................................
Existing Fund: Janus (Aspen Series) Forty              .64          .25          .06  .............          .95
 Portfolio (Service Class)...................
Replacement Fund: MetLife Stock Index                  .25          .10          .04       \1\ .01           .38
 Portfolio (Class D).........................
Existing Fund: Legg Mason Partners Variable            .31  ...........          .08  .............          .39
 Equity Index Portfolio (Class I)............
Replacement Fund: MetLife Stock Index                  .25          .25          .04       \1\ .01           .53
 Portfolio (Class B).........................
Existing Fund: Legg Mason Partners Variable            .31          .25          .08  .............          .64
 Equity Index Portfolio (Class II)...........
Replacement Fund: Blackrock Bond Income                .38  ...........          .06       \1\ .01           .43
 Portfolio (Class A).........................
Existing Fund: UIF Core Plus Fixed Income              .38  ...........          .27  .............          .65
 Portfolio (Class I).........................
Replacement Fund: Blackrock Bond Income                .38           25          .06       \1\ .01           .68
 Portfolio (Class B).........................
Existing Fund: UIF Core Plus Fixed Income              .38          .35          .27  .............         1.00
 Portfolio (Class II)........................
Replacement Fund: PIMCO Total Return                   .48           25          .04  .............          .77
 Portfolio (Class B).........................
Existing Fund: PIMCO (VIT) Total Return                .25  ...........          .58  .............          .83
 Portfolio (Admin Class).....................
Replacement Fund: Pioneer Strategic Income             .60          .15          .09  .............          .84
 Portfolio (Class E).........................
Existing Fund: Pioneer Strategic Income VCT            .65          .25          .18  .............         1.08
 Portfolio (Class II)........................
Replacement Fund: Van Kampen Comstock                  .58  ...........          .03  .............          .61
 Portfolio (Class A).........................
Existing Fund: Van Kampen LIT Comstock                 .56  ...........          .03  .............          .59
 Portfolio (Class I).........................
Replacement Fund: Van Kampen Comstock                  .58           25          .03  .............          .86
 Portfolio (Class B).........................
Existing Fund: Van Kampen LIT Comstock                 .56          .25          .03  .............          .84
 Portfolio (Class II)........................
----------------------------------------------------------------------------------------------------------------
\1\ Contractual fee waiver expiring 4/30/10 unless extended.

    11. MetLife Advisers, LLC or Met Investors Advisory, LLC is the
adviser of each of the Replacement Funds. Each Replacement Fund
currently offers up to five classes of shares, four of which, Class A,
Class B, Class D and Class E are involved in the substitutions.
    12. The Applicants believe the substitutions will provide
significant benefits to Contract owners, including improved selection
of sub-advisers and simplification of fund offerings through the
elimination of overlapping offerings.
    13. As a result of the substitutions, the number of investment
options under each Contract will either not be decreased, or, in those
cases where the number of investment options is being reduced, continue
to offer a significant number of alternative investment options
(currently expected to range in number from 2 to 134 after the
substitutions versus 2 to 134 before the substitutions).
    14. Those substitutions which replace investment options advised by
investment advisers that are not affiliated with the Substitution
Applicants with funds for which either Met Investors Advisory, LLC or
MetLife Advisers, LLC acts as investment adviser will permit each
adviser, under the Multi-Manager Order, [IC-22824 (1997) and IC-23859
(1999)], to hire, monitor and replace sub-advisers as necessary to
achieve optimal performance.
    15. Contract owners with sub-account balances invested (through the
separate account) in shares of the Replacement Funds will have either
lower or substantially similar total expense ratios.
    16. In the following substitutions, the management fee and/or
applicable Rule 12b-1 fee of the Replacement Fund are either currently
higher, or, at certain management fee breakpoints, may be higher than
those of the respective Existing Fund: DWS Conservative Allocation VIP/
MetLife Moderate Strategy Portfolio; DWS Growth Allocation VIP/MetLife
Growth Strategy Portfolio; DWS Moderate Allocation VIP/MetLife Balanced
Strategy Portfolio; Legg Mason Partners Variable Equity Index
Portfolio/MetLife Stock Index Portfolio; UIF Core Plus Fixed Income
Portfolio/BlackRock Bond Income Portfolio; PIMCO (VIT) Total Return
Portfolio/PIMCO Total Return Portfolio; and Van Kampen LIT Comstock
Portfolio/Van Kampen Comstock Portfolio.

    17. The Substitution Applicants propose to limit Contract charges
attributable to Contract value invested in the Replacement Funds
following the proposed substitutions to a rate that would offset the
difference in the expense ratio between each Existing Fund's net
expense ratio and the net expense ratio for the respective Replacement
Fund.
    18. The substitutions will result in decreased net expense ratios,
except for the Van Kampen LIT Comstock Portfolio/Van Kampen Comstock
Portfolio substitution. Moreover, there will be no increase in Contract
fees and expenses, including mortality and expense risk fees and
administration and distribution fees charged to the Separate Accounts
as a result of the substitutions.
    19. The Substitution Applicants believe that the Replacement Funds
have investment objectives, policies and risk profiles that are either
substantially the same as, or sufficiently similar to, the
corresponding Existing Funds to make those Replacement Funds
appropriate candidates as substitutes.
    20. In addition, after the substitutions, neither Met Investors
Advisory, LLC, MetLife Advisers, LLC nor any of their affiliates will
receive compensation from the charges to the Separate Accounts related
to the Contracts or from Rule 12b-1 fees or revenue sharing from the
Replacement Funds in excess of the compensation currently received from
the investment advisers or distributors of the Existing Funds.
    21. The share classes of the Replacement Funds are either identical
to or less than the share classes of the Existing Funds with respect to
the imposition of Rule 12b-1 fees currently imposed, except with
respect to the substitution of MetLife Stock Index Portfolio for Legg
Mason Partners Variable Equity Index Portfolio and PIMCO Total Return
Portfolio for PIMCO (VIT) Total Return Portfolio.
    22. Each Met Series Fund Replacement Fund's Class B, Class D and
Class E Rule 12b-1 fees can be raised to 0.50% of net assets by the
Replacement Fund's Board of Directors without shareholder approval.
Each MIST Replacement Fund's Class B and Class E Rule 12b-1 fees can be
raised to 0.50% and 0.25%, respectively, of net assets by the
Replacement Fund's Board of Trustees without shareholder approval.
However, Met Series Fund and MIST represent that Rule 12b-1 fees of the
Class B, Class D and Class E shares of the Replacement Funds issued in
connection with the proposed substitutions will not be raised above the
current rate without approval of a majority in interest of the
respective Replacement Funds' shareholders after the substitutions.
    23. The distributors of the Existing Funds pay to the Insurance
Companies, or their affiliates, any 12b-1 fees associated with the
class of shares sold to the Separate Accounts. Similarly, the
distributors for MIST and Met Series Fund will receive from the
applicable class of shares held by the Separate Accounts Rule 12b-1
fees in the same amount or a lesser amount than the amount paid by the
Existing Funds, except as described above.
    24. Further, in addition to any Rule 12b-1 fees, the investment
advisers or distributors of the Existing Funds pay the Insurance
Companies or one of their affiliates from 0 to 45 basis points for the
Existing Funds' classes of shares involved in the substitutions.
Following the substitutions, these payments will not be made on behalf
of the Replacement Funds. Rather, 25, 10 and 15 basis points in Rule
12b-1 fees from the Replacement Funds (with respect to Class B, Class D
and Class E shares, respectively) and profit distributions to members
from the Replacement Funds' advisers, will be available to the
Insurance Companies. These profits from investment advisory fees may be
more or less than the fees being paid by the Existing Funds.

Applicants' Legal Analysis and Conditions

    1. The Substitution Applicants request that the Commission issue an
order pursuant to Section 26(c) of the Act approving the proposed
substitutions.
    2. Applicants represent that the Contracts permit the applicable
Insurance Company, subject to compliance with applicable law, to
substitute shares of another investment company for shares of an
investment company held by a sub-account of the Separate Accounts. The
prospectuses for the Contracts and the Separate Accounts contain
appropriate disclosure of this right.
    3. By a supplement to the prospectuses for the Contracts and the
Separate Accounts, each Insurance Company has notified all owners of
the Contracts of its intention to take the necessary actions, including
seeking the order requested by this Application, to substitute shares
of the funds as described herein. The supplement has advised Contract
owners that from the date of the supplement until the date of the
proposed substitution, owners are permitted to make one transfer of
Contract value (or annuity unit exchange) out of the Existing Fund sub-
account to one or more other sub-accounts without the transfer (or
exchange) being treated as one of a limited number of permitted
transfers (or exchanges) or a limited number of transfers (or
exchanges) permitted without a transfer charge. The supplement also has
informed Contract owners that the Insurance Company will not exercise
any rights reserved under any Contract to impose additional
restrictions on transfers until at least 30 days after the proposed
substitutions. The supplement has also advised Contract owners that for
at least 30 days following the proposed substitutions, the Insurance
Companies will permit Contract owners affected by the substitutions to
make one transfer of Contract value (or annuity unit exchange) out of
the Replacement Fund sub-account to one or more other sub-accounts
without the transfer (or exchange) being treated as one of a limited
number of permitted transfers (or exchanges) or a limited number of
transfers (or exchanges) permitted without a transfer charge.
    4. The proposed substitutions will take place at relative net asset
value with no change in the amount of any Contract owner's Contract
value, cash value, or death benefit or in the dollar value of his or
her investment in the Separate Accounts.
    5. The process for accomplishing the transfer of assets from each
Existing Fund to its corresponding Replacement Fund will be determined
on a case-by-case basis. In most cases, it is expected that the
substitutions will be effected by redeeming shares of an Existing Fund
for cash and using the cash to purchase shares of the Replacement Fund.
In certain other cases, it is expected that the substitutions will be
effected by redeeming the shares of an Existing Fund in-kind; those
assets will then be contributed in-kind to the corresponding
Replacement Fund to purchase shares of that Fund. All in-kind
redemptions from an Existing Fund of which any of the Substitution
Applicants is an affiliated person will be effected in accordance with
the conditions set forth in the Commission's no-action letter issued to
Signature Financial Group, Inc. (available December 28, 1999).
    6. Contract owners will not incur any fees or charges as a result
of the proposed substitutions, nor will their rights or an Insurance
Company's obligations under the Contracts be altered in any way. All
expenses incurred in connection with the proposed substitutions,
including brokerage, legal, accounting, and other fees and expenses,
will be paid by the

Insurance Companies. In addition, the proposed substitutions will not
impose any tax liability on Contract owners. The proposed substitutions
will not cause the Contract fees and charges currently being paid by
existing Contract owners to be greater after the proposed substitutions
than before the proposed substitutions. No fees will be charged on the
transfers made at the time of the proposed substitutions because the
proposed substitutions will not be treated as a transfer for the
purpose of assessing transfer charges or for determining the number of
remaining permissible transfers in a Contract year.
    7. In addition to the prospectus supplements distributed to owners
of Contracts, within five business days after the proposed
substitutions are completed, Contract owners will be sent a written
notice informing them that the substitutions were carried out and that
they may make one transfer of all Contract value or cash value under a
Contract invested in any one of the sub-accounts on the date of the
notice to one or more other sub-accounts available under their Contract
at no cost and without regard to the usual limit on the frequency of
transfers from the variable account options to the fixed account
options. The notice will also reiterate that (other than with respect
to ``market timing'' activity) the Insurance Company will not exercise
any rights reserved by it under the Contracts to impose additional
restrictions on transfers or to impose any charges on transfers until
at least 30 days after the proposed substitutions. The Insurance
Companies will also send each Contract owner current prospectuses for
the Replacement Funds involved to the extent that they have not
previously received a copy.
    8. Each Insurance Company also is seeking approval of the proposed
substitutions from any state insurance regulators whose approval may be
necessary or appropriate.
    9. The Substitution Applicants agree that for those who were
Contract owners on the date of the proposed substitutions, the
Insurance Companies will reimburse, on the last business day of each
fiscal period (not to exceed a fiscal quarter) during the twenty-four
months following the date of the proposed substitutions, those Contract
owners whose sub-account invests in the Replacement Fund such that the
sum of the Replacement Fund's operating expenses and sub-account
expenses (asset-based fees and charges deducted on a daily basis from
sub-account assets and reflected in the calculation of sub-account unit
values) for such period will not exceed, on an annualized basis, the
sum of the Existing Fund's operating expenses and sub-account expenses
for fiscal year 2007, except with respect to the DWS Conservative
Allocation VIP/MetLife Moderate Strategy Portfolio, DWS Growth
Allocation VIP/MetLife Growth Strategy Portfolio, DWS Moderate
Allocation VIP/MetLife Balanced Strategy Portfolio, Legg Mason Partners
Variable Equity Index Portfolio/MetLife Stock Index Portfolio, UIF Core
Plus Fixed Income Portfolio/BlackRock Bond Income Portfolio, PIMCO
(VIT) Total Return Portfolio/PIMCO Total Return Portfolio and Van
Kampen LIT Comstock Portfolio/Van Kampen Comstock Portfolio
substitutions.
    10. With respect to the DWS Conservative Allocation VIP/MetLife
Moderate Strategy Portfolio, DWS Growth Allocation VIP/MetLife Growth
Strategy Portfolio, DWS Moderate Allocation VIP/MetLife Balanced
Strategy Portfolio, Legg Mason Partners Variable Equity Index
Portfolio/MetLife Stock Index Portfolio, UIF Core Plus Fixed Income
Portfolio/BlackRock Bond Income Portfolio, PIMCO (VIT) Total Return
Portfolio/PIMCO Total Return Portfolio and Van Kampen LIT Comstock
Portfolio/Van Kampen Comstock Portfolio substitutions, the
reimbursement agreement with respect to the Replacement Fund's
operating expenses and sub-account expenses, will extend for the life
of each Contract outstanding on the date of the proposed substitutions.
    11. The Substitution Applicants further agree that, except with
respect to the DWS Conservative Allocation VIP/MetLife Moderate
Strategy Portfolio, DWS Growth Allocation VIP/MetLife Growth Strategy
Portfolio, DWS Moderate Allocation VIP/MetLife Balanced Strategy
Portfolio, Legg Mason Partners Variable Equity Index Portfolio/MetLife
Stock Index Portfolio, UIF Core Plus Fixed Income Portfolio/BlackRock
Bond Income Portfolio, PIMCO (VIT) Total Return Portfolio/PIMCO Total
Return Portfolio and Van Kampen LIT Comstock Portfolio/Van Kampen
Comstock Portfolio substitutions, the Insurance Companies will not
increase total separate account charges (net of any reimbursements or
waivers) for any existing owner of the Contracts on the date of the
substitutions for a period of two years from the date of the
substitutions.
    12. With respect to the DWS Conservative Allocation VIP/MetLife
Moderate Strategy Portfolio, DWS Growth Allocation VIP/MetLife Growth
Strategy Portfolio, DWS Moderate Allocation VIP/MetLife Balanced
Strategy Portfolio, Legg Mason Partners Variable Equity Index
Portfolio/MetLife Stock Index Portfolio, UIF Core Plus Fixed Income
Portfolio/BlackRock Bond Income Portfolio, PIMCO (VIT) Total Return
Portfolio/PIMCO Total Return Portfolio and Van Kampen LIT Comstock
Portfolio/Van Kampen Comstock Portfolio substitutions, the agreement
not to increase the separate account charges will extend for the life
of each Contract outstanding on the date of the proposed substitutions.
    13. The Substitution Applicants submit that, in general, there is
little likelihood that significant additional assets, if any, will be
allocated to the above-listed Existing Funds and, therefore, because of
the cost of maintaining such Funds as investment options under the
Contracts, it is in the interest of shareholders to substitute the
applicable Replacement Funds which are currently being offered as
investment options by the Insurance Companies.
    14. In each case, the applicable Insurance Companies believe that
it is in the best interests of the Contract owners to substitute the
Replacement Fund for the Existing Fund. The Insurance Companies believe
that in cases where the Replacement Fund has a new sub-adviser, the new
sub-adviser will, over the long term, be positioned to provide at least
comparable performance to that of the Existing Fund's sub-adviser. In
certain substitutions, the same entity serves as sub-adviser for both
the Existing Fund and the Replacement Fund.
    15. The Substitution Applicants anticipate that Contract owners
will be better off with the array of sub-accounts offered after the
proposed substitutions than they have been with the array of sub-
accounts offered prior to the substitutions.
    16. The Substitution Applicants submit that none of the proposed
substitutions is of the type that Section 26(c) was designed to
prevent.
    17. The Substitution Applicants request an order of the Commission
pursuant to Section 26(c) of the Act approving the proposed
substitutions by the Insurance Companies.
    18. The Section 17 Applicants request an order under Section 17(b)
exempting them from the provisions of Section 17(a) to the extent
necessary to permit the Insurance Companies to carry out each of the
proposed substitutions, except for the DWS Conservative Allocation VIP/
MetLife Moderate Strategy Portfolio, DWS Growth Allocation VIP/MetLife
Growth Strategy Portfolio and DWS Moderate Allocation

VIP/MetLife Balanced Strategy Portfolio substitutions.
    19. Section 17(a)(1) of the Act, in relevant part, prohibits any
affiliated person of a registered investment company, or any affiliated
person of such person, acting as principal, from knowingly selling any
security or other property to that company. Section 17(a)(2) of the Act
generally prohibits the persons described above, acting as principals,
from knowingly purchasing any security or other property from the
registered company.
    20. Because shares held by a separate account of an insurance
company are legally owned by the insurance company, the Insurance
Companies and their affiliates collectively own of record substantially
all of the shares of MIST and Met Series Fund. Therefore, MIST and Met
Series Fund and their respective funds are arguably under the control
of the Insurance Companies notwithstanding the fact that Contract
owners may be considered the beneficial owners of those shares held in
the Separate Accounts. If MIST and Met Series Fund and their respective
funds are under the control of the Insurance Companies, then each
Insurance Company is an affiliated person or an affiliated person of an
affiliated person of MIST and Met Series Fund and their respective
funds. If MIST and Met Series Fund and their respective funds are under
the control of the Insurance Companies, then MIST and Met Series Fund
and their respective funds are affiliated persons of the Insurance
Companies.
    21. Regardless of whether or not the Insurance Companies can be
considered to control MIST and Met Series Fund and their respective
funds, because the Insurance Companies own of record more than 5% of
the shares of each of them and are under common control with each
Replacement Fund's investment adviser, the Insurance Companies are
affiliated persons of both MIST and Met Series Fund and their
respective funds. Likewise, their respective funds are each an
affiliated person of the Insurance Companies.
    22. The Insurance Companies, through their separate accounts in the
aggregate own more than 5% of the outstanding shares of the following
Existing Funds: Legg Mason Partners Variable Equity Index Portfolio,
PIMCO (VIT) Total Return Portfolio, Pioneer Strategic Income VCT
Portfolio, Van Kampen LIT Comstock Portfolio. Therefore, each Insurance
Company is an affiliated person of those funds.
    23. Because the substitutions other than the DWS Conservative
Allocation VIP/MetLife Moderate Strategy Portfolio, DWS Growth
Allocation VIP/MetLife Growth Strategy Portfolio and DWS Moderate
Allocation VIP/MetLife Balanced Strategy Portfolio substitutions may be
effected, in whole or in part, by means of in-kind redemptions and
purchases, the substitutions may be deemed to involve one or more
purchases or sales of securities or property between affiliated
persons. The proposed transactions may involve a transfer of portfolio
securities by the Existing Funds to the Insurance Companies;
immediately thereafter, the Insurance Companies would purchase shares
of the Replacement Funds with the portfolio securities received from
the Existing Funds. Accordingly, as the Insurance Companies and certain
of the Existing Funds listed above, and the Insurance Companies and the
Replacement Funds, could be viewed as affiliated persons of one another
under Section 2(a)(3) of the Act, it is conceivable that this aspect of
the substitutions could be viewed as being prohibited by Section 17(a).
    24. Section 17(b) of the Act provides that the Commission may, upon
application, grant an order exempting any transaction from the
prohibitions of Section 17(a) if the evidence establishes that: (a) The
terms of the proposed transaction, including the consideration to be
paid or received, are reasonable and fair and do not involve
overreaching on the part of any person concerned; (b) the proposed
transaction is consistent with the policy of each registered investment
company concerned, as recited in its registration statement and records
filed under the Act; and (c) the proposed transaction is consistent
with the general purposes of the Act.
    25. The Section 17 Applicants submit that for all the reasons
stated above the terms of the proposed in-kind purchases of shares of
the Replacement Funds by the Insurance Companies, including the
consideration to be paid and received, as described in this
Application, are reasonable and fair and do not involve overreaching on
the part of any person concerned. The Section 17 Applicants also submit
that the proposed in-kind purchases by the Insurance Companies are
consistent with the policies of: (a) MIST and of its Janus Forty, PIMCO
Total Return, Pioneer Strategic Income and Van Kampen Comstock
Portfolios; and (b) Met Series Fund and of its MetLife Stock Index and
BlackRock Bond Income Portfolios, as recited in the current
registration statements and reports filed by each under the Act.
Finally, the Section 17 Applicants submit that the proposed
substitutions set forth above are consistent with the general purposes
of the Act.
    26. To the extent that the in-kind purchases by the Insurance
Company of the Replacement Funds' shares are deemed to involve
principal transactions among affiliated persons, the procedures
described below should be sufficient to assure that the terms of the
proposed transactions are reasonable and fair to all participants. The
Section 17 Applicants maintain that the terms of the proposed in-kind
purchase transactions, including the consideration to be paid and
received by each fund involved, are reasonable, fair and do not involve
overreaching principally because the transactions will conform with all
but one of the conditions enumerated in Rule 17a-7. The proposed
transactions will take place at relative net asset value in conformity
with the requirements of Section 22(c) of the Act and Rule 22c-1
thereunder with no change in the amount of any Contract owner's
contract value or death benefit or in the dollar value of his or her
investment in any of the Separate Accounts. Contract owners will not
suffer any adverse tax consequences as a result of the substitutions.
The fees and charges under the Contracts will not increase because of
the substitutions. Even though the Separate Accounts, the Insurance
Companies, MIST and Met Series Fund may not rely on Rule 17a-7, the
Section 17 Applicants believe that the Rule's conditions outline the
type of safeguards that result in transactions that are fair and
reasonable to registered investment company participants and preclude
overreaching in connection with an investment company by its affiliated
persons. In addition, as stated above, the in-kind redemptions will
only be made in accordance with the conditions set out in the Signature
Financial Group no-action letter (December 29, 1999).
    27. The boards of MIST and Met Series Fund have adopted procedures,
as required by paragraph (e)(1) of Rule 17a-7, pursuant to which the
series of each may purchase and sell securities to and from their
affiliates. The Section 17 Applicants will carry out the proposed
Insurance Company in-kind purchases in conformity with all of the
conditions of Rule 17a-7 and each series' procedures thereunder, except
that the consideration paid for the securities being purchased or sold
may not be entirely cash. Nevertheless, the circumstances surrounding
the proposed substitutions will be such as to offer the same degree of
protection to each Replacement Fund from overreaching that Rule 17a-7
provides

to them generally in connection with their purchase and sale of
securities under that Rule in the ordinary course of their business. In
particular, the Insurance Companies (or any of their affiliates) cannot
effect the proposed transactions at a price that is disadvantageous to
any of the Replacement Funds. Although the transactions may not be
entirely for cash, each will be effected based upon (1) the independent
market price of the portfolio securities valued as specified in
paragraph (b) of Rule 17a-7, and (2) the net asset value per share of
each fund involved valued in accordance with the procedures disclosed
in its respective investment company registration statement and as
required by Rule 22c-1 under the Act. No brokerage commission, fee, or
other remuneration will be paid to any party in connection with the
proposed in kind purchase transactions.
    28. The sale of shares of Replacement Funds for investment
securities, as contemplated by the proposed Insurance Company in-kind
purchases, is consistent with the investment policies and restrictions
of the Investment Companies and the Replacement Funds because (a) the
shares are sold at their net asset value, and (b) the portfolio
securities are of the type and quality that the Replacement Funds would
each have acquired with the proceeds from share sales had the shares
been sold for cash. To assure that the second of these conditions is
met, Met Investors Advisory, LLC, MetLife Advisers, LLC and the sub-
adviser, as applicable, will examine the portfolio securities being
offered to each Replacement Fund and accept only those securities as
consideration for shares that it would have acquired for each such fund
in a cash transaction.
    29. The Section 17 Applicants submit that the proposed Insurance
Company in-kind purchases are consistent with the general purposes of
the Act as stated in the Findings and Declaration of Policy in Section
1 of the Act and that the proposed transactions do not present any of
the conditions or abuses that the Act was designed to prevent.
    30. The Section 17 Applicants represent that the proposed in-kind
purchases meet all of the requirements of Section 17(b) of the Act and
request that the Commission issue an order pursuant to Section 17(b) of
the Act exempting the Separate Accounts, the Insurance Companies, MIST,
Met Series Fund and each Replacement Fund from the provisions of
Section 17(a) of the Act to the extent necessary to permit the
Insurance Companies on behalf of the Separate Accounts to carry out, as
part of the substitutions, the in-kind purchase of shares of the
Replacement Funds which may be deemed to be prohibited by Section 17(a)
of the Act.

Conclusion

    Applicants assert that for the reasons summarized above that the
proposed substitutions and related transactions meet the standards of
Section 26(c) of the Act and are consistent with the standards of
Section 17(b) of the Act and that the requested orders should be
granted.

    For the Commission, by the Division of Investment Management
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7086 Filed 3-30-09; 8:45 am]


[Federal Register Volume 78, Number 211 (Thursday, October 31, 2013)]
[Notices]
[Page 65422]
[FR Doc No: 2013-26082]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

Agency Request for Emergency Processing of Collections of
Information Associated With Today's Publication of Notice of Funding
Availability and Solicitation of Applications

AGENCY: Federal Railroad Administration (FRA), United States Department
of Transportation (DOT).

ACTION: Notice.

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

SUMMARY: The Federal Railroad Administration (FRA) hereby gives notice
that it has submitted the following information collection request
(ICR) to the Office of Management and Budget (OMB) for Emergency
Processing under the Paperwork Reduction Act of 1995 (Pub. L. 104-13,
44 U.S.C. 3501 et seq.). FRA requests that OMB authorize the collection
of information identified below on or before November 6, 2013, for 180
days after the date of approval by OMB. A copy of this ICR, with
applicable supporting documentation, may be obtained by calling FRA's
Clearance Officer, Mr. Robert Brogan (tel.<PHONE_NUMBER>). These
numbers are not toll-free. A copy of this ICR may also be obtained
electronically by contacting Mr. Brogan at<EMAIL_ADDRESS>
Comments and questions about the ICR identified below should be
directed to the Office of Information and Regulatory Affairs (OIRA),
Attn: FRA OMB Desk Officer, 725 17th St. NW., Washington, DC 20503.
Comments and questions about the ICR identified below may also be
transmitted electronically to OIRA at<EMAIL_ADDRESS>
DATES: Comments should be submitted as soon as possible upon
publication of this notice in the Federal Register.
    Title: Notice of Funding Availability and Solicitation of
Applications for Grants under the Railroad Rehabilitation and Repair
Grant Program.
    OMB Control Number: 2130--New.
    Frequency: One-time.
    Affected Public: 49 States.
    Form(s): SF-424, SF-424C, SF-424D, SF LLL.
    Other Instruments: Collection of Information Associated with the
NOFA Published in Today's Federal Register.
    Estimated Total Annual Number of Responses: 10.0 Grant Applications
(Electronic).
    Estimated Total Annual Burden Hours: 4,790 hours.

SUPPLEMENTARY INFORMATION: There is approximately $1,870,000 available
in the Railroad Rehabilitation and Repair Grant Program, which was
originally supported with up to $20,000,000 of Federal funds provided
to FRA as part of the Consolidated Security, Disaster Assistance, and
Continuing Appropriations Act, 2009 (Pub. L. 110-329, September 30,
2008) (the Act). On November 6, 2008, FRA issued a Notice of Funding
Availability (NOFA) soliciting applications for grants to fund eligible
projects. FRA received applications and evaluated them according to
criteria described in the notice. Based on the applications submitted
and the subsequent evaluations, FRA selected projects totaling
approximately $15,000,000 under this Program. Then on October 7, 2009,
FRA issued another NOFA for the remaining $5,000,000. FRA received
applications and evaluated them according to criteria described in the
notice and subsequently selected 10 additional projects to receive
funding. Due to a variety of factors, such as projects completed under
their awarded amount, FRA has approximately $1,870,000 in funds
remaining for this program.
    Funds provided under this Program will assist Class II and Class
III railroads to repair and rehabilitate infrastructure damaged by
hurricanes, floods, and other natural disasters in areas for which the
President declared a major disaster after January 1, 2008, under Title
IV of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act of 1974. Applicant eligibility is limited to State departments of
transportation.
    The funding provided under these grants will be made available to
grantees on a reimbursement basis. FRA anticipates awarding grants to
multiple eligible participants. FRA may choose to award a grant or
grants within the available funds in any amount. The grantees must
exhaust all other Federal and State resources prior to seeking
assistance under this Program. FRA will begin accepting grant
applications on November 6, 2013. Applications may be submitted until
5:00 p.m. EST, December 9, 2013.

    Issued in Washington, DC, on October 29, 2013.
Corey Hill,
Director, Office of Passenger and Freight Programs.
[FR Doc. 2013-26082 Filed 10-30-13; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 76, Number 17 (Wednesday, January 26, 2011)]
[Notices]
[Pages 4684-4686]
[FR Doc No: 2011-1633]

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

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2010-0830; FRL-8854-2]

Pesticides; Science Policies; Notice of Withdrawal and Notice of
Availability

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: EPA announces the withdrawal of two pesticide science policy
documents that are no longer in use, entitled: ``The Incorporation of
Water Treatment Effects on Pesticide Removal and Transformations in
Food Quality Protection Act (FQPA) Drinking Water Assessments,'' dated
October 25, 2001, and ``Drinking Water Screening Level Assessments,''
dated September 1, 2000. EPA also announces the availability of two
updated pesticide science policy documents, entitled: ``The Development
and Use of the Index Reservoir in Drinking Water Exposure
Assessments,'' dated April 15, 2010, and ``Guidance on Development and
Use of Percent Cropped Area Adjustment,'' dated September 9, 2010.

FOR FURTHER INFORMATION CONTACT: Marietta Echeverria, Environmental
Fate and Effects Division (7507P), Office of Pesticide Programs,
Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460-0001; telephone number: (703) 305-

8578; fax number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general. This action,
however, may be of interest to persons who produce or formulate
pesticides or who register pesticide products. Since other entities may
also be interested, the Agency has not attempted to describe all the
specific entities that may be affected by this action. If you have any
questions regarding the applicability of this action to a particular
entity, consult the person listed under FOR FURTHER INFORMATION
CONTACT.

B. How can I get copies of this document and other related information?

    EPA has established a docket for this action under docket
identification (ID) number EPA-HQ-OPP-2010-0830. Publicly available
docket materials are available either in the electronic docket at
http://www.regulations.gov, or, if only available in hard copy, at the
Office of Pesticide Programs (OPP) Regulatory Public Docket in Rm. S-
4400, One Potomac Yard (South Bldg.), 2777 S. Crystal Dr., Arlington,
VA. The hours of operation of this Docket Facility are from 8:30 a.m.
to 4 p.m., Monday through Friday, excluding legal holidays. The Docket
Facility telephone number is<PHONE_NUMBER>.

II. Background

    The Food Quality Protection Act of 1996 significantly amended the
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) (7 U.S.C.
136 et seq.) and the Federal Food, Drug, and Cosmetic Act (FFDCA) (21
U.S.C. 346). Among other changes, FQPA established a stringent health-
based standard (``a reasonable certainty of no harm'') for pesticide
residues in foods to assure protection from unacceptable pesticide
exposure and strengthened health protections for infants and children
from pesticide risks.
    Working with stakeholders and a Federal advisory committee, the
Agency identified several science policy issues that were key to the
implementation of FQPA and tolerance reassessment. In the Federal
Register of October 29, 1998 (63 FR 58038) (FRL-6041-5), EPA published
a framework to describe the issues, and the public participation
process that EPA would use to review the documents developed to address
the issues identified. Following that process, EPA then issued a series
of draft and revised documents concerning the nine science policy
issues that were identified. The documents are available at http://www.epa.gov/oppfead1/trac/science/. Since that time, EPA has
periodically identified the need to update the documents to ensure that
the policy and guidance provided is current. This Federal Register
notice announces the withdrawal of two obsolete documents and the
availability of two updated documents.

III. Status Update for Pesticide Science Policy Documents

A. Withdrawn Documents

    EPA is withdrawing the pesticide science policy document ``The
Incorporation of Water Treatment Effects on Pesticide Removal and
Transformations in Food Quality Protection Act (FQPA) Drinking Water
Assessments,'' dated October 25, 2001, because it is obsolete. When
drafted in 2001, this science policy document was developed with two
objectives: (1) To present a preliminary literature review on the
impact of different treatment processes on pesticide removal and
transformation in treated drinking water derived from ground and
surface water sources; and (2) to describe how OPP would consider the
impacts of drinking water treatment in drinking water exposure
assessments under FQPA. Since the issuance of this policy document, OPP
has adjusted its methods for estimating pesticide concentrations in
drinking water, using a variety of data and different models. Up to
date information on the methods, models and databases used for drinking
water exposure assessments is available at http://www.epa.gov/pesticides/science/models_db.htm.
    EPA is also withdrawing the science policy document entitled:
``Drinking Water Screening Level Assessments,'' dated September 1,
2000, because the information it provided has been superseded by the
two updated documents whose availability is announced in the next
section.

B. Updated Documents

    The updated science policy document entitled ``Development and Use
of the Index Reservoir in Drinking Water Exposure Assessments,'' dated
April 15, 2010, updates and supersedes the science policy document
entitled ``Guidance for Use of the Index Reservoir in Drinking Water
Exposure Assessments,'' dated November 16, 1999. It also reflects
changes in procedures, error corrections, and editorial modifications
to improve clarity and completeness. This science policy document is
intended to provide guidance on the development and use of the index
reservoir scenario for use in estimating pesticide concentrations in
drinking water derived from vulnerable surface water supplies. Between
1996, after passage of the FQPA, and 2000 the Agency used the
``standard pond'' as an interim scenario for drinking water exposure.
In 2000, the Agency began using the index reservoir scenario to
represent a watershed capable of supporting a drinking water facility
that is prone to high pesticide concentrations. With the use of the
index reservoir scenario, the Office of Pesticide Programs was able to
improve the quality and accuracy of its models for estimating pesticide
concentrations in drinking water. This updated pesticide science policy
document is available online at http://www.epa.gov/oppefed1/models/water/index_reservoir_dwa.html.
    The updated science policy document entitled ``Development and Use
of Percent Cropped Area Adjustment Factors in Drinking Water Exposure
Assessments,'' dated September 9, 2010, merges two previous documents,
entitled ``Percent Crop Area Adjustment to Tier 2 Surface Water Model
Estimates for Pesticide Drinking Water Exposure Assessments,'' dated
December 7, 1999, and ``Use of Regional Percent Crop Area Factors in
Refined Drinking Water Assessments,'' dated July 23, 2003, and
supersedes both of them. The updated science policy document is
intended to provide guidance on the development and use of the percent
cropped area (PCA) adjustment factors in estimating the exposure in
drinking water derived from vulnerable surface water supplies. Since
the passage of FQPA in 1996 through 2000, the Agency assumed the entire
area of the watershed was planted with the crop of interest (i.e. crop
coverage). In 2000, the Agency began using the PCA adjustment factor to
account for the percentage of the watersheds planted with a crop,
recognizing that a watershed large enough to support a drinking water
facility will not usually be planted completely with a single crop. Use
of this factor improves the quality and accuracy of OPP's modeling of
drinking water exposure for pesticides. This updated pesticide science
policy document is available online at http://www.epa.gov/oppefed1/models/water/pca_adjustment_dwa.html.

IV. Policies Not Rules

    The policy documents discussed in this notice are intended to
provide guidance to EPA personnel and decision makers, and to the
public. As a guidance

document and not a rule, the policies in this guidance are not binding
on either EPA or any outside parties. Although this guidance provides a
starting point for EPA risk assessments, EPA will depart from its
policy where the facts or circumstances warrant. In such cases, EPA
will explain why a different course was taken. Similarly, outside
parties remain free to assert that a policy is not appropriate for a
specific pesticide or that the circumstances surrounding a specific
risk assessment demonstrate that a policy should not be applied.

List of Subjects

    Environmental protection, Administrative practice and procedure,
Agricultural commodities, Pesticides and pests.

    Dated: January 19, 2011.
Stephen A. Owens,
Assistant Administrator, Office of Chemical Safety and Pollution
Prevention.
[FR Doc. 2011-1633 Filed 1-25-11; 8:45 am]
BILLING CODE 6560-50-P


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

    Regulatory Flexibility Analysis Required: No.
    Agency Contact: Michal Chwedczuk, Department of Transportation,
Saint Lawrence Seaway Development Corporation, 1200 New Jersey Avenue
SE, Washington, DC 20590, Phone:<PHONE_NUMBER>, Email:
<EMAIL_ADDRESS>    RIN: 2135-AA53

393.  Tariff of Tolls (Rulemaking Resulting From a Section 610
Review) [2135-AA54]

    Legal Authority: 33 U.S.C. 981 et seq.
    Abstract: The Great Lakes St. Lawrence Seaway Development
Corporation (GLS) and the St. Lawrence Seaway Management Corporation
(SLSMC) of Canada, under international agreement, jointly publish and
presently administer the St. Lawrence Seaway Tariff of Tolls in their
respective jurisdictions. The Tariff sets forth the level of tolls
assessed on all commodities and vessels transiting the facilities
operated by the GLS and the SLSMC.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
Final Rule..........................   12/00/22  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: No.
    Agency Contact: Michal Chwedczuk, Department of Transportation,
Saint Lawrence Seaway Development Corporation, 1200 New Jersey Avenue
SE, Washington, DC 20590, Phone:<PHONE_NUMBER>, Email:
<EMAIL_ADDRESS>    RIN: 2135-AA54
BILLING CODE 4910-61-P

DEPARTMENT OF TRANSPORTATION (DOT)

Pipeline and Hazardous Materials Safety Administration (PHMSA)

Proposed Rule Stage

394. +Pipeline Safety: Gas Pipeline Leak Detection and Repair [2137-
AF51]

    Legal Authority: 49 U.S.C. 60101 et seq.
    Abstract: This rulemaking would amend the pipeline safety
regulations to enhance requirements for detecting and repairing leaks
on new and existing natural gas distribution, gas transmission, and gas
gathering pipelines. The proposed rule is necessary to respond to a
mandate from section 113 of the Protecting our Infrastructure of
Pipelines and Enhancing Safety Act of 2020.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   03/00/23  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Sayler Palabrica, Department of Transportation,
Pipeline and Hazardous Materials Safety Administration, 1200 New Jersey
Avenue SE, District of Columbia, DC 20590, Phone:<PHONE_NUMBER>, Email:
<EMAIL_ADDRESS>    RIN: 2137-AF51

395. +Pipeline Safety: Pipeline Operational Status [2137-AF52]

    Legal Authority: 49 U.S.C. 60101 et seq.
    Abstract: This rulemaking would amend the pipeline safety
regulations to define an idled operational status for natural gas and
hazardous liquid pipelines that are temporarily removed from service,
set operations and maintenance requirements for idled pipelines, and
establish inspection requirements for idled pipelines that are returned
to service. The proposed rule is necessary to respond to a mandate from
the Protecting our Infrastructure of Pipelines and Enhancing Safety Act
of 2020.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   11/00/23  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Sayler Palabrica, Department of Transportation,
Pipeline and Hazardous Materials Safety Administration, 1200 New Jersey
Avenue SE, District of Columbia, DC 20590, Phone:<PHONE_NUMBER>, Email:
<EMAIL_ADDRESS>    RIN: 2137-AF52

396. +Pipeline Safety: Safety of Gas Distribution Pipelines and Other
Pipeline Safety Initiatives [2137-AF53]

    Legal Authority: 49 U.S.C. 60101 et seq.
    Abstract: This rulemaking would amend the pipeline safety
regulations to enhance the safety requirements for gas distribution
pipelines. The proposed rule is necessary to respond to several
mandates from title II of the Protecting our Infrastructure of
Pipelines and Enhancing Safety Act of 2020 (PIPES Act of 2020).
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   05/00/23  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Ashlin Bollacker, Technical Writer, Department of
Transportation, Pipeline and Hazardous Materials Safety Administration,
1200 New Jersey Avenue SE, Washington, DC 20590, Phone:<PHONE_NUMBER>,
Email<EMAIL_ADDRESS>    RIN: 2137-AF53

DEPARTMENT OF TRANSPORTATION (DOT)

Pipeline and Hazardous Materials Safety Administration (PHMSA)

Final Rule Stage

397. +Hazardous Materials: Enhanced Safety Provisions for Lithium
Batteries Transported by Aircraft (FAA Reauthorization Act of 2018)
[2137-AF20]

    Legal Authority: 49 U.S.C. 44701; 49 U.S.C. 5103(b); 49 U.S.C.
5120(b)
    Abstract: This rulemaking amends the Hazardous Materials
Regulations (HMR) to (1) prohibit the transport of lithium ion cells
and batteries as cargo on passenger aircraft; (2) require all lithium
ion cells and batteries to be shipped at not more than a 30 percent
state of charge on cargo-only aircraft; and (3) limit the use of
alternative provisions for small lithium cell or battery to one package
per consignment. The amendments do not restrict passengers or crew
members from bringing personal items or electronic devices containing
lithium cells or batteries aboard aircraft, or restrict the air
transport of lithium ion cells or batteries when packed with or
contained in equipment. To accommodate persons in areas

potentially not serviced daily by cargo aircraft, PHMSA provides a
limited exception for not more than two replacement lithium cells or
batteries specifically used for medical devices to be transported by
passenger aircraft and at a state of charge greater than 30 percent,
under certain conditions and as approved by the Associate
Administrator. This rulemaking is necessary to meet the FAA
Reauthorization Act of 2018, address a safety hazard, and harmonize the
HMR with emergency amendments to the 2015-2016 edition of the
International Civil Aviation Organization's Technical Instructions for
the Safe Transport of Dangerous Goods by Air.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
Interim Final Rule..................   03/06/19  84 FR 8006
Interim Final Rule Effective........   03/06/19  .......................
Interim Final Rule Comment Period      05/06/19  .......................
 End.
Final Rule..........................   01/00/23  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Eugenio Cardez, Transportation Regulations
Specialist, Department of Transportation, Pipeline and Hazardous
Materials Safety Administration, 1200 New Jersey Avenue SE, Washington,
DC 20590, Phone:<PHONE_NUMBER>, Email<EMAIL_ADDRESS>    RIN: 2137-AF20

DEPARTMENT OF TRANSPORTATION (DOT)

Pipeline and Hazardous Materials Safety Administration (PHMSA)

Completed Actions

398. +Pipeline Safety: Amendments to Parts 192 and 195 To Require Valve
Installation and Minimum Rupture Detection Standards [2137-AF06]

    Legal Authority: 49 U.S.C. 60101 et seq.
    Abstract: This rulemaking action would revise the Pipeline Safety
Regulations applicable to most newly constructed and entirely replaced
onshore natural gas transmission and hazardous liquid pipelines to
improve rupture mitigation and shorten pipeline segment isolation
times. The rulemaking action would define ``notification of potential
rupture'' and outline certain performance standards related to rupture
identification and pipeline segment isolation. This rulemaking action
also would require specific valve maintenance and inspection
requirements, and 9-1-1 notification requirements to help operators
achieve better rupture response and mitigation.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   02/06/20  85 FR 7162
NPRM Comment Period End.............   04/06/20  .......................
Final Rule..........................   04/08/22  87 FR 20940
Final Rule Effective................   10/05/22  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Robert Jagger, Technical Writer, Department of
Transportation, Pipeline and Hazardous Materials Safety Administration,
1200 New Jersey Avenue SE, Washington, DC 20590, Phone:<PHONE_NUMBER>,
Email<EMAIL_ADDRESS>    RIN: 2137-AF06

[FR Doc. 2023-02031 Filed 2-21-23; 8:45 am]
BILLING CODE 4910-60-P


[Federal Register Volume 78, Number 212 (Friday, November 1, 2013)]
[Notices]
[Pages 65634-65635]
[FR Doc No: 2013-26093]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 2

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC14-13-000.
    Applicants: Portland General Electric Company, BA Leasing BSC, LLC,
Fale-Safe Incorporated.
    Description: Application of Portland General Electric Company, BA
Leasing

BSC, LLC and Fale-Safe, Incorporated under FPA Section 203 and Request
for Expedited Consideration.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5085.
    Comments Due: 5 p.m. ET 11/14/13.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER12-911-007.
    Applicants: CPV Sentinel, LLC.
    Description: Notice of Non-Material Change in Status of CPV
Sentinel.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5078.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER13-1422-005.
    Applicants: Ebensburg Power Company.
    Description: Inquiry Response to be effective 5/12/2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5074.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER13-2334-001.
    Applicants: Midcontinent Independent System Operator, Inc., Alliant
Energy Corporate Services, Inc.
    Description: Midcontinent Independent System Operator, Inc. submits
10-24-2013 SA 6001 Deficiency Resp Interstate-ITC Att NN to be
effective 9/24/2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5081.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER14-170-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: 10-23-2013 Attachment C Filing to be effective 12/22/
2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5000.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER14-172-000.
    Applicants: ISO New England Inc.
    Description: Conforming Sections to Approved Language to be
effective 9/1/2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5004.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER14-173-000.
    Applicants: Southwest Power Pool, Inc.
    Description: 2198R12 Kansas Power Pool NITSA and NOA to be
effective 10/1/2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5025.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER14-174-000.
    Applicants: Southwest Power Pool, Inc.
    Description: 1636R12 Kansas Electric Power Cooperative, Inc. NITSA
and NOA to be effective 10/1/2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5027.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER14-175-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: 10-24-2013 SA 1891 Termination NSP-Stoneray Amended
GIA to be effective 10/21/2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5036.
    Comments Due: 5 p.m. ET 11/14/13.

    Docket Numbers: ER14-176-000.
    Applicants: Southwest Power Pool, Inc.
    Description: 1765R7 KCP&L-GMO NITSA and two NOAs to be effective
10/1/2013.
    Filed Date: 10/24/13.
    Accession Number: 20131024-5054.
    Comments Due: 5 p.m. ET 11/14/13.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: October 24, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-26093 Filed 10-31-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 202 (Thursday, October 18, 2018)] [Notices] [Pages 52848-52849] [FR Doc No: 2018-22690]

=======================================================================

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2018-0784]

Collection of Information Under Review by Office of Management

and Budget; OMB Control Number: 1625-0014

AGENCY: Coast Guard, DHS.

ACTION: Thirty-day notice requesting comments.

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

SUMMARY: In compliance with the Paperwork Reduction Act of 1995 the

U.S. Coast Guard is forwarding an Information Collection Request (ICR),

abstracted below, to the Office of Management and Budget (OMB), Office

of Information and Regulatory Affairs (OIRA), requesting an extension

of its approval for the following collection of information: 1625-0014,

Request for Designation and Exemption of Oceanographic Research

Vessels; without change. Our ICR describes the information we seek to

collect from the public. Review and comments by OIRA ensure we only

impose paperwork burdens commensurate with our performance of duties.

DATES: Comments must reach the Coast Guard and OIRA on or before

November 19, 2018.

ADDRESSES: You may submit comments identified by Coast Guard docket

number [USCG-2018-0784] to the Coast Guard using the Federal

eRulemaking Portal at https://www.regulations.gov. Alternatively, you

may submit comments to OIRA using one of the following means:

    (1) Email: [email protected].

    (2) Mail: OIRA, 725 17th Street NW, Washington, DC 20503, attention

Desk Officer for the Coast Guard.

    A copy of the ICR is available through the docket on the internet

at https://www.regulations.gov. Additionally, copies are available

from: COMMANDANT (CG-612), ATTN: PAPERWORK REDUCTION ACT MANAGER, U.S.

COAST GUARD, 2703 MARTIN LUTHER KING JR AVE SE, STOP 7710, WASHINGTON,

DC 20593-7710.

FOR FURTHER INFORMATION CONTACT: Contact Mr. Anthony Smith, Office of

Information Management, telephone<PHONE_NUMBER>, or fax<PHONE_NUMBER>,

for questions on these documents.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    This Notice relies on the authority of the Paperwork Reduction Act

of 1995; 44 U.S.C. Chapter 35, as amended. An ICR is an application to

OIRA seeking the approval, extension, or renewal of a Coast Guard

collection of information (Collection). The ICR contains information

describing the Collection's purpose, the Collection's likely burden on

the affected public, an explanation of the necessity of the Collection,

and other important information describing the Collection. There is one

ICR for each Collection.

    The Coast Guard invites comments on whether this ICR should be

granted based on the Collection being necessary for the proper

performance of Departmental functions. In particular, the Coast Guard

would appreciate comments addressing: (1) The practical utility of the

Collection; (2) the accuracy of the estimated burden of the Collection;

(3) ways to enhance the quality, utility, and clarity of information

subject to the Collection; and (4) ways to minimize the burden of the

Collection on respondents, including the use of automated collection

techniques or other forms of information technology. These comments

will help OIRA determine whether to approve the ICR referred to in this

Notice.

    We encourage you to respond to this request by submitting comments

and related materials. Comments to Coast Guard or OIRA must contain the

OMB Control Number of the ICR. They must also contain the docket number

of this request, [USCG-2018-0784], and must be received by November 19,

2018.

Submitting Comments

    We encourage you to submit comments through the Federal eRulemaking

Portal at https://www.regulations.gov. If your material cannot be

submitted using https://www.regulations.gov, contact the person in the

FOR FURTHER INFORMATION CONTACT section of this document for alternate

instructions. Documents mentioned in this notice, and all public

comments, are in our online docket at https://www.regulations.gov and

can be viewed by following that website's instructions. Additionally,

if you go to the online docket and sign up for email alerts, you will

be notified when comments are posted.

    We accept anonymous comments. All comments received will be posted

without change to https://www.regulations.gov and will include any

personal information you have provided. For more about privacy and the

docket, you may review a Privacy Act notice regarding the Federal

Docket Management System in the March 24, 2005, issue of the Federal

Register (70 FR 15086).

    OIRA posts its decisions on ICRs online at https://www.reginfo.gov/public/do/PRAMain after the comment period for each ICR. An OMB Notice

of Action on each ICR will become available via a hyperlink in the OMB

Control Number: 1625-0014.

Previous Request for Comments

    This request provides a 30-day comment period required by OIRA. The

Coast Guard published the 60-day notice (83 FR 39769, August 10, 2018)

required by 44 U.S.C. 3506(c)(2). That Notice elicited no comments.

Accordingly, no changes have been made to the Collections.

Information Collection Request

    Title: Request for Designation and Exemption of Oceanographic

Research Vessels.

    OMB Control Number: 1625-0014.

    Summary: This collection requires submission of specific

information about a vessel in order for the vessel to be designated as

an Oceanographic Research Vessel (ORV).

    Need: Title 46 U.S.C. 2113 authorizes the Secretary of the

Department of Homeland Security to exempt Oceanographic Research

Vessels (ORV), by regulation, from provisions of Subtitle II, of Title

46, Shipping, of the United States Code, concerning maritime safety and

seaman's welfare laws. This information is necessary to ensure a vessel

qualifies for the designation of ORV under 46 CFR part 3 and 46 CFR

part 14, subpart D.

    Forms: N/A.

    Respondents: Owners or operators of certain vessels.

    Frequency: On occasion.

    Hour Burden Estimate: The estimated burden has increased from 25

hours to 36 hours a year due to an increase in the estimated annual

number of respondents.

    Authority: The Paperwork Reduction Act of 1995; 44 U.S.C.

Chapter 35, as amended.

    Dated: October 11, 2018.

James D. Roppel,

U.S. Coast Guard, Acting Chief, Office of Information Management.

[FR Doc. 2018-22690 Filed 10-17-18; 8:45 am]

 BILLING CODE 9110-04-P


[Federal Register Volume 77, Number 42 (Friday, March 2, 2012)]
[Notices]
[Page 12890]
[FR Doc No: 2012-5059]

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

Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: US Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.

Extension:
    Regulation AC; OMB Control No. 3235-0575; SEC File No. 270-517.

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
existing collection of information provided for in the following rule:
Regulation Analyst Certification (AC) (17 CFR 242.500-505), under the
Securities Exchange Act of 1934 (15 U.S.C 78a et seq.).
    Regulation AC requires that research reports published, circulated,
or provided by a broker or dealer or covered person contain a statement
attesting that the views expressed in each research report accurately
reflect the analyst's personal views and whether or not the research
analyst received or will receive any compensation in connection with
the views or recommendations expressed in the research report.
Regulation AC also requires broker-dealers to, on a quarterly basis,
make, keep, and maintain records of research analyst statements
regarding whether the views expressed in public appearances accurately
reflected the analyst's personal views, and whether any part of the
analyst's compensation is related to the specific recommendations or
views expressed in the public appearance. Regulation AC also requires
that research prepared by foreign persons be presented to U.S. persons
pursuant to Securities Exchange Act Rule 15a-6 and that broker-dealers
notify associated persons if they would be covered by the regulation.
Regulation AC excludes the news media from its coverage.
    The collections of information under Regulation AC are necessary to
provide investors with information with which to determine the value of
the research available to them. It is important for an investor to know
whether an analyst may be biased with respect to securities or issuers
that are the subject of a research report. Further, in evaluating a
research report, it is reasonable for an investor to want to know about
an analyst's compensation. Without the information collection, the
purposes of Regulation AC could not be met.
    The Commission estimates that Regulation AC imposes an aggregate
annual time burden of approximately 26,230 hours on 5,186 respondents,
or approximately 5 hours per respondent. The Commission estimates that
the total annual internal cost of the 26,230 hours is approximately
$10,615,404.00, or approximately $2,047.00 per respondent, annually.
    The Commission may not conduct or sponsor a collection of
information unless it displays a currently valid OMB control number. No
person shall be subject to any penalty for failing to comply with a
collection of information subject to the PRA that does not display a
valid OMB control number.
    The public may view background documentation for this information
collection at the following Web site, www.reginfo.gov. Comments should
be directed to: (i) Desk Officer for the Securities and Exchange
Commission, Office of Information and Regulatory Affairs, Office of
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503, or by sending an email to<EMAIL_ADDRESS>and (ii) Thomas Bayer, Director/Chief Information
Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon,
6432 General Green Way, Alexandria, VA 22312 or send an email to<EMAIL_ADDRESS>Comments must be submitted to OMB within 30 days of
this notice.

    Dated: February 27, 2012.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-5059 Filed 3-1-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: March 29, 2007 (Volume 72, Number 60)]
[Notices]
[Page 14841-14842]
[DOCID:fr29mr07-128]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55518; File No. SR-NASD-2007-024]

Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Portfolio Margin

March 23, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on March 20, 2007, the National Association of
Securities Dealers, Inc. (``NASD'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
NASD. NASD has filed the proposed rule as a ``non-controversial'' rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders it effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    NASD is proposing to correct a typographical error in NASD Rule
2520 (Margin Requirements). In particular, the proposed rule change
would amend NASD Rule 2520 to re-label a subparagraph that was
incorrectly identified as part of a recent rule filing. Below is the
text of the proposed rule change.\5\ Proposed new language is in
italics; proposed deletions are in [brackets].
---------------------------------------------------------------------------

    \5\ The underlying rule text used in this proposed rule change
is based on NASD Rule 2520, as amended by SR-NASD-2007-013, which
will be implemented on April 2, 2007. See Exchange Act Release No.
55471 (March 14, 2007), 72 FR 13149 (March 20, 2007) (Notice of
filing and immediate effectiveness of File No. SR-NASD-2007-013).
---------------------------------------------------------------------------

* * * * *
2520. Margin Requirements
    (a) through (f) No Change.
    (g) Portfolio Margin.
    As an alternative to the ``strategy-based'' margin requirements set
forth in paragraphs (a) through (f) of this Rule, members may elect to
apply the portfolio margin requirements set forth in this paragraph (g)
to all margin equity securities,\1\ listed options, security futures
products (as defined in Section 3(a)(56) of the Exchange Act), unlisted
derivatives, warrants, index warrants and related instruments, provided
that the requirements of paragraph (g)(6)(B)(i) of this Rule are met.
    In addition, a member, provided that it is a Futures Commission
Merchant (``FCM'') and is either a clearing member of a futures
clearing organization or has an affiliate that is a clearing member of
a futures clearing organization, is permitted under this paragraph (g)
to combine an eligible participant's related instruments as defined in
paragraph (g)(2)(D), with listed index options, unlisted derivatives,
options on exchange traded funds (``ETF''), index warrants and
underlying instruments and compute a margin requirement for such
combined products on a portfolio margin basis.
    The portfolio margin provisions of this Rule shall not apply to
Individual Retirement Accounts (``IRAs'').
    (1) through (5) No Change.
    (6) Establishing Account and Eligible Positions.l
    (A) No Change.
    (B) Eligible Products.
    (i) For eligible participants as described in paragraphs (g)(4)(A)
through (g)(4)(C), a transaction in, or transfer of, an eligible
product may be effected in the portfolio margin account. Eligible
products under this paragraph (g) consist of:
    (a) through (e) No Change.
    [(d)](f) a related instrument as defined in paragraph (g)(2)(D).
    (7) through (15) No Change.

    \1\For purposes of this paragraph (g) of the Rule, the term
``margin equity security'' utilizes the definition at Section 220.2
of Regulation T of the Board of Governors of the Federal Reserve
System.

* * * * *

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

    In its filing with the Commission, NASD 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. NASD 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
    On February 12, 2007, NASD filed with the Commission for immediate
effectiveness a proposed rule change to amend Rule 2520 (Margin
Requirements) to establish a portfolio margin pilot program.\6\ The
Commission published notice of the proposed rule change in the Federal
Register on March 20, 2007.\7\ The proposed rule change, among other
things, added a new paragraph (g)(6)(B)(i) that specifies in separate
subparagraphs a list of the eligible products for the portfolio margin
pilot program. This list of eligible products in paragraph (g)(6)(B)(i)
inadvertently identifies two provisions as subparagraph (d). NASD is
filing this proposed rule change to re-label the last subparagraph (d)
as subparagraph (f).
---------------------------------------------------------------------------

    \6\ The portfolio margin pilot program is substantially similar
to recent margin rule amendments by the New York Stock Exchange
(``NYSE'') and the Chicago Board Options Exchange (``CBOE''), which
were approved by the Commission. See Exchange Act Release No. 54918
(December 12, 2006), 71 FR 75790 (December 18, 2006) (SR-NYSE-2006-
13, relating to further amendments to the NYSE's portfolio margin
pilot program); Exchange Act Release No. 54125 (July 11, 2006), 71
FR 40766 (July 18, 2006) (SR-NYSE-2005-93, relating to amendments to
the NYSE's portfolio margin pilot program); Exchange Act Release No.
52031 (July 14, 2005) 70 FR 42130 (July 21, 2005) (SR-NYSE-2002-19,
relating to the NYSE's original portfolio margin pilot). See also
Exchange Act Release No. 54919 (December 12, 2006), 71 FR 75781
(December 18, 2006) (SR-CBOE-2006-014, relating to amendments to the
CBOE's portfolio margin pilot); Exchange Act Release No. 52032 (July
14, 2005) 70 FR 42118 (July 21, 2005) (SR-CBOE-2002-03, relating to
the CBOE's original portfolio margin pilot).
    \7\ See Exchange Act Release No. 55471 (March 14, 2007), 72 FR
13149 (March 20, 2007) (Notice of filing and immediate effectiveness
of File No. SR-NASD-2007-013).
---------------------------------------------------------------------------

    NASD has filed the proposed rule change for immediate
effectiveness. As noted above, the proposed rule change is part of a
pilot program that would

begin on April 2, 2007 and end on July 31, 2007, unless the SEC
approves an extension of the pilot or adoption of the program on a
permanent basis.
2. Statutory Basis
    NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\8\ which requires, among
other things, that NASD rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. NASD believes that this technical change is consistent
with the protection of investors and the public interest in that it
will avoid any confusion when reading the provisions of Rule
2520(g)(6)(B)(i).
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

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

    NASD does not believe that the proposed rule change will result in
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

    Written comments were neither solicited nor received.

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

    The foregoing proposed rule change is subject to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder \10\
because the proposal: (i) Does not significantly affect the protection
of investors or the public interest; (ii) does not impose any
significant burden on competition; and (iii) does not become operative
prior to 30 days after the date of filing or such shorter time as the
Commission may designate. At any time within 60 days of the filing of
such proposed rule change, the Commission may summarily abrogate 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    NASD has asked the Commission to waive the five-day pre-filing
notice requirement and the 30-day operative delay. The Commission
believes such waivers are consistent with the protection of investors
and the public interest because they would allow the technical
corrections in the proposed rule change to be implemented on April 2,
2007, when the NASD portfolio margin pilot program begins, pursuant to
SR-NASD-2007-013.\11\ For this reason, the Commission designates the
proposal to be operative upon filing with the Commission.\12\
---------------------------------------------------------------------------

    \11\ For purposes only of waiving the 30-day pre-operative
period, the Commission has considered the proposed rule's impact on
efficiency, competition and capital formation. 15 U.S.C. 78c(f).
    \12\ See supra note 7.
---------------------------------------------------------------------------

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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-NASD-2007-024 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-NASD-2007-024. 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 NASD. 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-NASD-2007-024 and should be submitted on or before April 19, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-5814 Filed 3-28-07; 8:45 am]

BILLING CODE 8010-01-P