[Federal Register Volume 83, Number 113 (Tuesday, June 12, 2018)]
[Notices]
[Pages 27355-27356]
[FR Doc No: 2018-12555]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83390; File No. SR-CboeBZX-2017-005]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change, as
Modified by Amendment No. 1 Thereto, To List and Trade Shares of Each
Series of the Cboe Vest S&P 500 Buffer Protect Strategy ETF Under the
ETF Series Solutions Trust Under Rule 14.11(c)(3), Index Fund Shares

June 6, 2018.
    On November 21, 2017, Cboe BZX Exchange, Inc. (``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares of each series of the
Cboe Vest S&P 500[reg] Buffer Protect Strategy ETF under Exchange Rule
14.11(c)(3), Index Fund Shares. The proposed rule change was published
for comment in the Federal Register on December 11, 2017.\3\ On January
22, 2018, the Commission extended the time period within which to
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to approve or disapprove
the proposed rule change.\4\ On March 9, 2018, the Commission initiated
proceedings to determine whether to disapprove the proposed rule
change.\5\ On April 13, 2018, the Exchange filed Amendment No. 1 to the
proposed rule change, which amended and superseded the proposed rule
change as originally

filed.\6\ The Commission has received no comments on the proposed rule
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 82217 (December 5,
2017), 82 FR 58243.
    \4\ See Securities Exchange Act Release No. 82558, 83 FR 3820
(January 26, 2018). The Commission designated March 11, 2018 as the
date by which the Commission shall approve, disapprove, or institute
proceedings to determine whether to approve or disapprove, the
proposed rule change.
    \5\ See Securities Exchange Act Release No. 82842, 83 FR 11273
(March 14, 2018).
    \6\ Amendment No. 1, which amended and replaced the proposed
rule change in its entirety, is available at: https://www.sec.gov/comments/sr-cboebzx-2017-005/cboebzx2017005-3458514-162203.pdf.
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    Section 19(b)(2) of the Act \7\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of the filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on December 11, 2017. June 9, 2018 is 180 days from
that date, and August 8, 2018 is 240 days from that date.
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    \7\ 15 U.S.C. 78s(b)(2).
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    The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider the proposed
rule change, as modified by Amendment No. 1. Accordingly, pursuant to
Section 19(b)(2) of the Act,\8\ the Commission designates August 8,
2018 as the date by which the Commission shall either approve or
disapprove the proposed rule change (File No. SR-CboeBZX-2017-005), as
modified by Amendment No. 1.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(57).
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Brent J. Fields,
Secretary.
[FR Doc. 2018-12555 Filed 6-11-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Notices]
[Pages 13690-13691]
[FR Doc No: 2011-5761]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64057; File No. SR-CBOE-2011-019]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Modify the CBOE Fees Schedule

March 8, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 25, 2011 [sic], Chicago Board Options Exchange,
Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities
and Exchange Commission (the ``Commission'') the proposed rule change
as described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to modify the Fees Schedule to amend its
linkage fees. The text of the proposed rule change is available on the
Exchange's Web site (http://www.cboe.org/legal), at the Exchange's
Office of the Secretary, and at the Commission.

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

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

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

1. Purpose
    Currently, when the Exchange receives a customer order that has an
original size of 500 or more contracts that is routed for execution, in
whole or in part, to one or more exchanges in connection with the
Options Order Protection and Locked/Crossed Market Plan (a ``Customer
Linkage Transaction''), the Exchange charges $0.35 per contract in
addition to the customary CBOE execution charges.\3\ The Exchange
proposes to reduce the qualifying customer order size from 500 or more
contracts to 100 or more contracts. This change will allow the Exchange
to pass through some of the transaction costs incurred by the Exchange
associated with the execution and handling of larger orders.
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    \3\ See CBOE Fees Schedule, Section 20. See, also, Securities
Exchange Act Release No. 63701 (January 11, 2011), 76 FR 2934
(January 18, 2011) (SR-CBOE-2010-116) and Securities Exchange Act
Release No. 62793 (August 30, 2010), 75 FR 54408 (September 7, 2010)
(SR-CBOE-2010-076).
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    The Exchange further proposes to eliminate the flat $0.35 per
contract fee for Customer Linkage Transactions, and instead pass
through the actual transaction fee(s) assessed on the transaction(s) by
the exchange(s) to which the order was routed, minus a $0.05 per
contract discount. These changes allow the Exchange to more accurately
pass through some of the transaction costs incurred by the Exchange
associated with Customer Linkage Transactions while still offering an
added incentive to route orders to CBOE.
    The Exchange does not propose to collect these fees for orders
initially routed for manual handling by CBOE Floor Brokers. More
specifically, the Exchange will exempt from these pass-through fees
customer orders that originate from the trading floor via an Exchange
sponsored terminal like a Floor Broker Workstation.\4\ The primary
objective of the fee change is to recoup some of the costs associated
with large electronic orders that are initially transmitted to CBOE by
parties who, in many instances, could be seeking to avoid being
assessed another market's transaction fees. Orders that are initially
routed to CBOE Floor Brokers are not attempting to avoid fees since
they incur brokerage commission charges in connection with manual
handling. Rather, orders that are handled by CBOE Floor Brokers are
large, complex orders that are primarily executed on the CBOE, which
only are transmitted to away markets if, during their execution on
CBOE, it is necessary to sweep some away markets.
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    \4\ The Floor Broker Workstation is a system for electronically
entering and managing orders on the Exchange floor. Floor Broker
Workstations are operated by Floor Brokers.
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    The proposed fee change will take effect on March 1, 2011.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\5\ in general, and furthers
the objectives of Section 6(b)(4) \6\ of the Act in particular, in that
the passing through of the actual transaction fees assessed on away
exchanges for Customer Linkage Transactions is designed to provide for
the equitable allocation of reasonable dues, fees, and other charges
among CBOE Trading Permit Holders and other persons using Exchange
facilities. Exempting customer orders that originate from an Exchange-
sponsored terminal from the pass-through fees is equitable because
Floor Brokers and their customers are already assessed a number of fees
in connection with trading on the Exchange Floor.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section
19(b)(3)(A)(ii) \7\ of the Act and subparagraph (f)(2) of Rule 19b-4
\8\ thereunder.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 C.F.R. 240.19b-4(f)(2).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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-CBOE-2011-019 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2011-019. 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 website (http://www.sec.gov/rules/sro/shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street, NE., Washington,
DC 20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of such filing will also be available for inspection and
copying at the principal office of the Exchange. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File No. SR-CBOE-2011-019 and should be submitted on or
before April 4, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5761 Filed 3-11-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: July 10, 2009 (Volume 74, Number 131)]
[Rules and Regulations]
[Page 33146-33152]
[DOCID:fr10jy09-6]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2005-TX-0005; FRL-8928-6]

Approval and Promulgation of Air Quality Implementation Plans;
Texas; Revisions to the 1-Hour Ozone Plan for the Beaumont/Port Arthur
Area: Control of Air Pollution From Volatile Organic Compounds,
Nitrogen Compounds, and Reasonably Available Control Technology

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is approving part of two Beaumont-Port Arthur (BPA) State
Implementation Plan (SIP) revisions that were submitted separately by
the State of Texas on October 15, 2005. The revisions being approved
pertain to volatile organic compound (VOC) control requirements for
batch processing and ship building and ship repair, and also to
Reasonably Available Control Technology (RACT) requirements, for the
Beaumont/Port Arthur (BPA) 1-hour ozone serious nonattainment area. In
today's action, EPA is approving: The State's changes to the batch
process rules and the shipbuilding and ship repair rules that lower the
threshold for affected sources of VOC emissions to the serious area
requirements of 50 tons per year (tpy),

and the State's demonstration that the BPA area meets RACT requirements
for sources of VOC and NOX emissions for the 1-hour ozone
standard. These revisions meet statutory and regulatory requirements,
and are consistent with EPA's guidance. The EPA is approving these
revisions pursuant to section 110 and part D of the Federal Clean Air
Act (the Act).

DATES: This direct final rule will be effective September 8, 2009
without further notice, unless EPA receives relevant adverse comments
by August 10, 2009. If EPA receives such comment, EPA will publish a
timely withdrawal of the direct final rule in the Federal Register
informing the public that this rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket No. EPA-R06-OAR-
2005-TX-0005, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
     EPA Region 6 ``Contact Us'' Web site: http://epa.gov/
region6/r6coment.htm. Please click on ``6PD'' (Multimedia) and select
``Air'' before submitting comments.
     E-mail: Mr. Guy Donaldson at<EMAIL_ADDRESS>Please
also send a copy by e-mail to the person listed in the FOR FURTHER
INFORMATION CONTACT section below.
     Fax: Mr. Guy Donaldson, Chief, Air Planning Section (6PD-
L), at fax number<PHONE_NUMBER>.
     Mail: Mr. Guy Donaldson, Chief, Air Planning Section (6PD-
L), Environmental Protection Agency, 1445 Ross Avenue, Suite 1200,
Dallas, Texas 75202-2733.
     Hand or Courier Delivery: Mr. Guy Donaldson, Chief, Air
Planning Section (6PD-L), Environmental Protection Agency, 1445 Ross
Avenue, Suite 1200, Dallas, Texas 75202-2733. Such deliveries are
accepted only between the hours of 8 a.m. and 4 p.m. weekdays except
for legal holidays. Special arrangements should be made for deliveries
of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R06-OAR-
2005-TX-0005. EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at http://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed
to be Confidential Business Information (CBI) or other information
whose disclosure is restricted by statute. Do not submit information
that you consider to be CBI or otherwise protected through http://
www.regulations.gov or e-mail. The http://www.regulations.gov Web site
is an ``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses.
    Docket: All documents in the docket are listed in the http://
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in http://www.regulations.gov or in hard copy at the Air Planning
Section (6PD-L), Environmental Protection Agency, 1445 Ross Avenue,
Suite 700, Dallas, Texas 75202-2733. The file will be made available by
appointment for public inspection in the Region 6 FOIA Review Room
between the hours of 8:30 a.m. and 4:30 p.m. weekdays except for legal
holidays. Contact the person listed in the FOR FURTHER INFORMATION
CONTACT paragraph below or Mr. Bill Deese at<PHONE_NUMBER> to make an
appointment. If possible, please make the appointment at least two
working days in advance of your visit. There will be a 15 cent per page
fee for making photocopies of documents. On the day of the visit,
please check in at the EPA Region 6 reception area at 1445 Ross Avenue,
Suite 700, Dallas, Texas.
    The State submittal is also available for public inspection at the
State Air Agency listed below during official business hours by
appointment: Texas Commission on Environmental Quality (TCEQ), Office
of Air Quality, 12124 Park 35 Circle, Austin, Texas 78753.

FOR FURTHER INFORMATION CONTACT: Ellen Belk, Air Planning Section (6PD-
L), Environmental Protection Agency, Region 6, 1445 Ross Avenue, Suite
700, Dallas, Texas 75202-2733, telephone<PHONE_NUMBER>; fax number
214-665-7263; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document, whenever ``we''
``us'' or ``our'' is used, we mean the EPA.

Table of Contents

I. What Action Is EPA Taking?
II. Control of VOC Emissions for Batch Processes and Shipbuilding
and Ship Repair
    1. What Has the State Submitted?
    2. What Are the Requirements of Texas' Regulation for Control of
VOCs?
    3. Why Is EPA Approving Texas' Regulation for Control of VOCs?
III. Reasonably Available Control Technology (RACT) for the 1-hr
Ozone BPA Area
    1. VOC RACT
    2. NOX RACT
IV. What Is the Process for EPA To Approve This SIP Revision?
V. Final Action
VI. Statutory and Executive Order Reviews

I. What Action Is EPA Taking?

    We are approving parts of two State Implementation Plan (SIP)
revisions containing VOC controls submitted by the State of Texas
pertaining to the BPA 1-hour ozone serious nonattainment area, as well
as the State's demonstration that the BPA area meets RACT requirements
for sources of VOC and NOX emissions for the 1-hour ozone
standard. Specifically, the revisions to the batch process rules and
shipbuilding and ship repair rules lower VOC emission exemption levels
for batch process operations and shipbuilding and ship repair
operations in the BPA area from 100 tpy to 50 tpy to reflect the
classification status of the BPA area as serious under the 1-hour
standard, revising sections 115.167, 115.169, 115.427, and 115.429 of
Title 30 of the Texas Administrative Code, Chapter 115 (30 TAC 115).
The SIP revisions being approved today also include a demonstration
that the BPA area meets the RACT requirements for VOC and
NOX for a serious 1-hour ozone nonattainment area. RACT is
the lowest emission limit that a particular source is capable of
meeting by the application of the control technology that is reasonably
available considering technological and economic feasibility. RACT
requirements for ozone nonattainment areas can be found in section 182
of the Act. For its RACT demonstration, the State relies upon
previously approved VOC and NOX SIP rules (e.g., 65 FR

64148, October 26, 2000), as well as the VOC rule changes for batch
process and shipbuilding and ship repair being approved in this action.
EPA is finding that the BPA 1-hour ozone serious nonattainment area
meets the RACT requirements for VOCs and NOX.

II. Control of VOC Emissions in Batch Processes and Shipbuilding and
Ship Repair

1. What Has the State Submitted?

    This action addresses part of two Texas submittals for Control of
VOCs. The first submittal, entitled ``Concerning Revisions to 30 TAC
Chapter 115 Control of Air Pollution from Volatile Organic Compounds''
was adopted September 9, 2005, by the State of Texas and submitted to
EPA for approval as a SIP revision on October 15, 2005. This submittal
included the following: (1) Revising VOC control requirements for the
following source categories in the BPA area to meet the serious area
VOC RACT requirements: Shipbuilding and Ship Repair, and Batch
Processes, and (2) removing a contingency measure requirement for
controls for loading and unloading of VOC from marine vessels. In this
action, EPA is addressing only the first of these components: changes
to the rules for Shipbuilding and Ship Repair, and Batch Processes, in
the BPA area. We will take action on the second component in a separate
Federal Register later. We note that the BPA area currently meets RACT
requirements to limit air emissions of VOC and hazardous air pollutants
(HAP) from new and existing marine tank vessel loading operations (30
TAC 115.549). Today, we are approving the revised VOC rules as part of
the Texas SIP. We also are finding that these revised VOC rules meet
RACT for the BPA serious 1-hour ozone nonattainment area.
    The second submittal, ``Concerning Revisions to the Attainment
Demonstration for the Beaumont/Port Arthur Ozone Nonattainment Area''
was also adopted September 9, 2005, by the State and submitted October
15, 2005, to EPA for approval as a SIP revision. This second submittal
addressed four of the BPA area's outstanding 1-hour ozone obligations:
(1) Major source applicability for RACT, (2) Clean-Fuel Vehicle
Programs, (3) Reasonably Available Control Measures (RACM), and (4) a
contingency measure for marine vessel loading, and also provided a
demonstration of attainment for the 1997 8-hour ozone standard and an
associated motor vehicle emissions budget (MVEB). In this action, EPA
is addressing only the first of these components, the State's VOC and
NOX RACT demonstration. We will take action upon the other
components later in Federal Register notices. Today, we are finding
that the NOX rules approved on October 26, 2000 (65 FR
64148) meet RACT and that the BPA area meets the 1-hour ozone serious
area RACT requirements for VOC and NOX.

2. What Are the Requirements of Texas' Regulation for Control of VOCs?

    VOC control regulations for two source categories are being revised
to increase the level of control required: batch process operations,
and shipbuilding and repair operations. Today's action will change the
exemption levels in these two categories from 100 tpy to 50 tpy of VOC,
so that all of the source categories in the BPA area have a threshold
consistent with the threshold of 50 tpy or greater for serious 1-hour
ozone nonattainment areas.
    In 2004, the BPA area was reclassified from a moderate to a serious
nonattainment area for the 1-hour ozone standard, which resulted in a
change in the major source applicability definition from 100 tpy to 50
tpy. TCEQ staff reviewed the VOC point source inventory to determine
whether all major sources were covered by VOC RACT rules and found
that, with the exception of the batch process rules and the
shipbuilding and ship repair rules, all other source categories were
covered by a RACT SIP rule in the BPA area with a threshold consistent
with the threshold of 50 tpy for serious 1-hour ozone nonattainment
areas.
    This rule will affect VOC-emitting facilities in the three counties
in the BPA 1-hour ozone serious nonattainment area. Table 1 lists the
affected Texas Counties:

              Table 1--Counties Affected by This Rulemaking
------------------------------------------------------------------------
    Counties in BPA 1-hour ozone nonattainment area affected by this
                               rulemaking
-------------------------------------------------------------------------
Hardin
Jefferson
Orange
------------------------------------------------------------------------

    Texas' Chapter 115 regulations control VOC emissions for many
categories of sources. In particular, this rulemaking affects VOC
control requirements for the following source categories in the BPA
area to meet the serious area VOC RACT requirements: Shipbuilding and
Ship Repair [30 TAC 115.427(a)(3)(H) and 30 TAC 115.429(c)], and Batch
Processes [30 TAC 115.167(1)(A) and 30 TAC 115.169(a) & (c)], which are
shown in Table 2:

    Table 2--Texas Administrative Code (TAC) Chapter 115 Subchapters
                       Affected by This Rulemaking
------------------------------------------------------------------------
        Chapter 115 subchapter                      Section
------------------------------------------------------------------------
B General VOC Sources:
    Division 6 Batch Processes:
        Exemptions...................  115.167(1)(A).
        Counties and Compliance        115.169(a) and (c).
         Schedules.
E Solvent-Using Processes:
    Division 2 Surface Coating
     Processes:
        Exemptions...................  115.427(a)(3)(H).
        Counties and Compliance        115.429(c).
         Schedules.
------------------------------------------------------------------------

    To determine whether a specific facility in one of the above
counties will be affected by one or more of the above revisions, see
Texas' associated rule revisions included in the docket.

3. Why Is EPA Approving Texas' Regulation for Control of VOCs?

    Section 182 of the Act requires that ozone nonattainment areas
classified as moderate and above implement RACT on certain sources of
VOCs and NOX. In particular, States must adopt rules that
implement RACT on sources covered by control techniques guidelines
(CTGs) issued prior to the 1990 amendments to the Act, sources covered
by CTGs issued after the 1990 amendments and major

sources of emissions not covered by a CTG.
    On March 7, 1995, as part of our action approving VOC RACT
requirements, we found that Texas had implemented VOC RACT in the BPA
area for both (1) sources covered by a CTG issued prior to the 1990
amendments to the Act, and (2) major sources not covered by a CTG (44
FR 12438, March 7, 1995). Since that time, EPA has issued CTGs, and
alternative control techniques (ACT) for additional source categories.
As a result, EPA has approved further revisions as meeting VOC RACT for
the BPA area, including the following: Aerospace Coatings are addressed
in 66 FR 54688 (October 30, 2001); Batch Processes and Industrial
Wastewater in 65 FR 79745 (December 20, 2000); Wood Furniture Coating
Operations and Ship Building and Repair Operations in 64 FR 12759
(March 15, 1999); Plastic Parts Coatings, Reactor Processes and
Distillation Operations Process in the SOCMI, and Volatile Organic
Liquid Storage in 64 FR 3841 (January 26, 1999). While CTGs and ACTs
were issued for a few other categories, there are no major sources in
those categories in the BPA area. Texas submitted, and EPA approved,
negative declarations on these CTG source categories in 61 FR 55894
(October 30, 1996). On May 15, 2001, EPA found that the BPA area had
met the VOC RACT requirements for moderate 1-hour ozone nonattainment
areas (66 FR 26914).
    In 2004, BPA was reclassified from moderate to serious. As a
serious area, the major source threshold dropped from 100 tpy to 50
tpy. On September 9, 2005, the TCEQ adopted revisions to the SIP for
the BPA 1-hour ozone nonattainment area. The SIP revisions were
submitted to EPA on October 15, 2005; two parts of these revisions are
being approved in today's action. One part of these revisions that is
being approved in this action are the State's revised rules that lower
the exemption level for control of VOC emissions from 100 tpy to 50 tpy
for shipbuilding and ship repair and batch processes, thus making the
rules more stringent. This is consistent with VOC RACT requirements for
serious 1-hour nonattainment areas. Our approval of the revised Texas
regulations will make them Federally enforceable and the revised SIP
will meet the serious area VOC RACT requirements for these source
categories in the BPA area.
    EPA has reviewed the revisions for consistency with the
requirements of the Act and Federal regulations, and evaluated the
analysis provided by Texas for determining whether the BPA area meets
VOC RACT requirements for an area with a serious classification for the
1-hour ozone standard. The specific requirements and EPA's evaluation
of these requirements are detailed in the TSD found in the electronic
docket. Revisions to the Texas regulations for control of VOC (30 TAC
Chapter 115, sections 115.167, 115.169, 115.427, and 115.429) are also
included in the docket.

III. Reasonably Available Control Technology (RACT) for the 1-hr Ozone
BPA Area

    On March 30, 2004, EPA reclassified the BPA area as a serious
nonattainment area for the 1-hour ozone standard and required the State
to submit a revised SIP meeting the serious area 1-hour ozone
requirements including RACT for VOC and NOX emissions from
major sources (69 FR 16483); this action became effective April 29,
2004.
    Sections 172(c)(1) and 182 of the Act require areas that are
classified as moderate or above for ozone nonattainment to adopt RACT
requirements for sources that are subject to CTGs for VOC source
categories issued by EPA and for ``major sources'' of VOCs and
NOX, which are ozone precursors. Specifically, section
182(b)(2) of the Act requires States to adopt RACT for all major
sources of VOC in ozone nonattainment areas; and, section 182(f)
requires the RACT provisions for major stationary sources of
NOX. Section 182(c) of the Act defines ``major source'' for
serious areas as a source that has the potential to emit 50 tpy or more
of NOX. RACT is defined as the lowest emissions limitation
that a particular source is capable of meeting by the application of
control technology that is reasonably available considering
technological and economic feasibility (44 FR 53762; September 17,
1979).
    EPA published the 8-hour ozone designations and the Phase 1 Rule
for implementing the 1997 8-hour ozone standard and the designations
for the 8-hour ozone standard in the Federal Register (FR) on April 30,
2004 (69 FR 23858 and 69 FR 23951). The BPA area was designated
nonattainment for this standard and classified as marginal, and
included the following three counties: Hardin, Jefferson, and Orange
(these three also constituted the 1-hour ozone nonattainment area). At
the time of designation for the 1997 8-hour standard, BPA was a
nonattainment area for the 1-hour ozone standard and had several
outstanding 1-hour ozone obligations, including the area did not have
approved serious area RACT requirements for VOC and NOX
emissions.
    The Phase 1 Rule provided that 1-hour ozone nonattainment areas
were required to adopt and implement ``applicable requirements''
according to the area's classification under the 1-hour ozone standard
(see 40 CFR 51.905(a)(i)). The BPA area was classified as a serious
nonattainment area at the time of the 8-hour designation and an
outstanding ``applicable requirement'' for the BPA area is serious area
RACT for VOC and NOX. In the three counties which comprise
the 1-hour ozone nonattainment area (Hardin, Jefferson and Orange),
Texas previously adopted rules to address VOC and NOX RACT
requirements for all major sources at the moderate area major source
emissions threshold of 100 tons per year (tpy) or greater. The
reclassification of the BPA area from moderate to serious for the 1-
hour ozone standard, on March 30, 2004 (69 FR 16483), required Texas to
ensure that RACT was in place on all major sources of 50 tpy or greater
of VOC and NOX emissions.
    EPA reviewed the SIP rules, the revised VOC rules being approved
today, and the State's RACT demonstration to determine whether RACT for
VOCs and NOX has been adopted in the BPA area as required to
meet 1-hour ozone standard requirements. EPA is finding that the RACT
requirements for VOCs and NOX in the BPA area meet the 1-
hour ozone standard serious area requirements. RACT for VOCs and RACT
for NOX are discussed successively below.

1. VOC RACT

    In the three counties which comprise the 1-hour ozone nonattainment
area (Hardin, Jefferson and Orange), Texas previously adopted rules to
address RACT requirements for all VOC source categories covered by EPA
CTGs, and to address VOC major sources not covered by CTGs at the
moderate area major source emissions threshold of 100 tons per year
(tpy). A CTG provides information on the available controls for a VOC
source category and provides a ``presumptive norm'' for VOC RACT. EPA
approved these rules as meeting VOC RACT for a moderate 1-hour ozone
nonattainment area in a series of actions.
    On March 7, 1995, as part of our action approving VOC requirements,
EPA found that Texas had implemented RACT in the BPA area for both (1)
sources covered by a CTG issued prior to the 1990 amendments to the
Act, and (2) major sources not covered by a CTG (60 FR 12438). On
October 30, 1996, EPA approved SIP Revisions Regarding Negative
Declarations for Source Categories Subject to RACT for Louisiana and
Texas (61 FR 55984). For

the Beaumont/Port Arthur region, negative declarations were approved
for the following categories: clean-up solvents, aerospace coatings,
shipbuilding and repair, wood furniture, plastic part coatings--
business machines, plastic part coatings--others, autobody refinishing,
and offset lithography. On May 22, 1997, EPA granted limited approval
of VOC control measures for Texas (62 FR 27964). This action finalized
the proposed limited approval of control measures that were included as
part of an earlier proposal related to a 15 Percent Rate of Progress
Plan (61 FR 2751, Jan. 29, 1996). We converted this limited approval
into a full approval on January 26, 1999 (64 FR 3841).
    Since that time, EPA has approved further revisions as meeting RACT
for the BPA area, including the following: Aerospace Coatings are
addressed in 66 FR 54688 (October 30, 2001); Batch Processes and
Industrial Wastewater in 65 FR 79745 (December 20, 2000); Wood
Furniture Coating Operations and Ship Building and Repair Operations in
64 FR 12759 (March 15, 1999); Plastic Parts Coatings, Reactor Processes
and Distillation Operations Process in the SOCMI, and Volatile Organic
Liquid Storage in 64 FR 3841 (January 26, 1999). While CTGs and ACTs
were issued for a few other categories, there are no major sources in
those categories in the BPA area. Texas submitted, and EPA approved,
negative declarations on these categories in 61 FR 55894 (October 30,
1996). On May 15, 2001, EPA found that the BPA area had met VOC RACT
requirements for moderate 1-hour ozone nonattainment areas (66 FR
26914). EPA approved additional control measures which enhanced the
Texas VOC RACT SIP in an action on February 27, 2008 (73 FR 10383);
among other things, this action included requirements to control VOC
emissions from industrial wastewater systems in BPA.
    Texas submitted two SIP revisions addressing the serious area RACT
requirements (one lowering the limit of two VOC rules from 100 to 50
tpy, and another addressing serious VOC and NOX RACT
overall), and we reviewed both SIP submissions with respect to the 1-
hour ozone serious area RACT requirements for the BPA 1-hour ozone
nonattainment area.
    EPA has evaluated the analysis provided by Texas for determining
whether the BPA area meets VOC RACT requirements for an area with a
serious classification. The specific requirements to meet RACT and
EPA's evaluation of these requirements are detailed in the TSD, which
is available in the docket supporting this action: Docket No. EPA-R06-
OAR-2005-TX-0005. Texas' 30 TAC Chapter 115 revisions are included in
the docket. Based upon the TCEQ's review and our evaluation, we are
finding that the BPA area meets the serious area RACT requirements for
VOCs under the 1-hour ozone standard.

2. NOX RACT

    The Act's NOX RACT requirements are described by EPA in
the ``NOX Supplement'' document titled, ``State
Implementation Plans; Nitrogen Oxides Supplement to the General
Preamble; Clean Air Act Amendments of 1990 Implementation of Title I;
Proposed Rule,'' published November 25, 1992 (57 FR 55620). EPA also
discussed what it viewed as presumptive NOX RACT, concerning
emission limits for certain categories of utility boilers, using a 30-
day rolling average basis. For those source categories which EPA
addressed in the NOX Supplement and their presumptive RACT,
States were required to adopt rules that either met EPA's presumptions
or were at least as stringent, to meet the NOX RACT
requirements.
    In setting the NOX RACT standards, the States may
consider the total cost, total emission reductions, and cost
effectiveness of controls needed to achieve the emission limits or
equipment standards. Generally, the total NOX reductions
achieved and the cost effectiveness of NOX controls fall
within the ranges articulated in EPA's Office of Air Quality Planning
policy memoranda, such as the March 16, 1994 memorandum entitled,
``Cost-Effective Nitrogen Oxides (NOX) Reasonably Available
Control Technology (RACT)'', and the January 10, 1995 memorandum
entitled, ``De Minimis Values For NOX RACT.'' For example,
the March 16, 1994 memorandum recommends that a NOX
reduction of 30% to 50%, corresponding to a cost-effectiveness range of
$160 to $1300, be considered in the setting of NOX RACT
standards.
    For the Texas SIP, EPA initially approved revisions to the SIP's
NOX rules, found at 30 TAC Chapter 117, into the Texas SIP
as adopted by the State on May 11, 1993, at 65 FR 11468 (March 3,
2000). Among other things, EPA approved the revised NOX
rules for the BPA area as meeting NOX RACT, in that
rulemaking action. See Table II of the 65 FR 11468 for a detailed
summary of NOX emissions limits. By approving the revised
NOX rules as RACT in that rulemaking action we also made the
finding that the BPA area met the moderate area NOX RACT
requirements.
    On September 1, 2000 at 65 FR 53172, EPA approved revisions to the
Texas SIP NOX rules at 30 TAC Chapter 117, into the Texas
SIP. EPA approved the rules as meeting RACT for the BPA area, among
other things, in that rulemaking action. We evaluated the
NOX emission limitations for the BPA area and found them to
be reasonably available, and technologically and economically feasible.
For more information, see Tables I and II of 65 FR 53172 for a detailed
summary of those NOX emissions limits, as well as pages 15-
18 of the TSD prepared in conjunction with this rulemaking.
    On October 26, 2000, at 65 FR 64148, the EPA approved further
revisions to the Texas SIP NOX rules at 30 TAC Chapter 117,
into the Texas SIP. In that SIP revision action by EPA, the
NOX revised rules entitled, ``Emissions Specifications for
Attainment Demonstration (ESAD)'' were considered at that time to be
more stringent than moderate area NOX RACT. Tables III and
IV of 65 FR 64148 contain summaries of those NOX emissions
limits. We did not make a NOX RACT determination at that
time.
    The State's NOX RACT demonstration submitted by the
State on October 15, 2005, to show that serious NOX RACT is
in place in the BPA area, relies upon all of the above SIP-approved
NOX rules. Today, we are finding that the revised
NOX rules approved into the Texas SIP on October 26, 2000,
meet NOX RACT.
    We are finding that the Texas SIP rules in 30 TAC Chapter 117,
Control of Air Pollution from Nitrogen Compounds for major sources,
located in the three Texas Counties of Jefferson, Hardin, and Orange,
apply to all sources having a potential to emit of 50 tpy or more of
NOX, and meet the NOX RACT requirements for a
serious ozone nonattainment area under the 1-hour ozone standard. We
have examined the NOX control requirements of the Texas SIP
rules at 30 TAC Chapter 117 for the affected sources within these three
Texas Counties, as approved into the Texas SIP, and have determined
that the rules apply to serious area major source thresholds and that
the level of control for these affected sources in the BPA area meets
the NOX RACT requirements of the Act and is consistent with
our guidance documents. For more information, see the TSD document
prepared in conjunction with today's rulemaking action, as well as 65
FR 11468, 65 FR 53172, and 65 FR 64148. The TSD is made available in
docket No. EPA-R06-OAR-2005-TX-0005. You can find the NOX
RACT-related documents at http://www.epa.gov/ttn/naaqs/ozone/ctg_act/
index.htm (URL dating October 9, 2008).

    The existing NOX rules in the Texas SIP already apply to
a serious area's source threshold and we either have found or are today
finding that they meet NOX RACT. Based upon the TCEQ's
review and our evaluation, we are finding that the BPA area meets
serious area RACT requirements for NOX under the 1-hour
ozone standard.

IV. What Is the Process for EPA To Approve This SIP Revision?

    The EPA is publishing this rule without prior proposal because the
Agency views this as a noncontroversial amendment and anticipates no
adverse comments. However, in the proposed rules section of this
Federal Register publication, EPA is publishing a separate document
that will serve as the proposal to approve the SIP revision should
adverse comments be filed. This action will be effective September 8,
2009 without further notice, unless EPA receives relevant adverse
comments by August 10, 2009.
    If EPA receives such comment, EPA will publish a timely withdrawal
of the direct final rule in the Federal Register informing the public
that this rule will not take effect. All public comments received will
then be addressed in a subsequent final rule based on the proposed
rule. The EPA will not institute a second comment period. Parties
interested in commenting should do so at this time. If no such comments
are received, the public is advised that this rule will be effective on
September 8, 2009 and no further action will be taken on the proposed
rule. Please note that if EPA receives adverse comment on an amendment,
paragraph, or section of this rule and if that provision may be severed
from the remainder of the rule, EPA may adopt as final those provisions
of the rule that are not the subject of an adverse comment.

V. Final Action

    EPA is approving Texas' Chapter 115 Control of Air Pollution from
Volatile Organic Compounds amendments to sections 115.167, 115.169,
115.427, and 115.429 which extend requirements for control of VOC
emissions to sources with the potential to emit 50 tpy or more, and
incorporating this regulation into the Texas SIP. In conjunction with
approving these VOC amendments into the Texas SIP, EPA finds they meet
serious area VOC RACT. EPA also finds that the NOX rules
approved into the Texas SIP on October 26, 2000, at 65 FR 64148, are
RACT. Further, EPA is also finding, based upon our review and
evaluation of the State's demonstration, that the BPA area meets the
serious area VOC and NOX RACT requirements for the 1-hour
ozone standard.

VI. Statutory and Executive Order Reviews

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

The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by September 8, 2009. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Ozone, Nitrogen dioxides,
Reporting and recordkeeping requirements, Volatile organic compounds.

    Dated: June 29, 2009.
Miguel I. Flores,
Acting Regional Administrator, Region 6.

0
40 CFR part 52 is amended as follows:

PART 52--[AMENDED]

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

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

Subpart SS--Texas

0
2. Section 52.2270 is amended as follows:
0
a. The table in paragraph (c) entitled ``EPA Approved Regulations in
the Texas SIP'' is amended under ``Chapter 115 (Reg 5)--Control of Air
Pollution From Volatile Organic Compounds'' by revising the entries for
Sections 115.167, 115.169, 115.427, and 115.429.

0
b. The second table in paragraph (e) entitled ``EPA-Approved
Nonregulatory Provisions and Quasi-Regulatory Measures in the Texas
SIP'' is amended by adding at the end a new entry for ``VOC and
NOX RACT demonstration for the 1-hour ozone NAAQS'' for the
Beaumont/Port Arthur Area.
    The revisions and addition read as follows:

Sec.  52.2270  Identification of plan.

* * * * *
    (c) * * *

                                                        EPA-Approved Regulations in the Texas SIP
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      State approval/
           State citation                      Title/subject             submittal          EPA approval date                    Explanation
                                                                           date
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                      Chapter 115 (Reg 5)--Control of Air Pollution from Volatile Organic Compounds
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Subchapter B--General Volatile Organic Compound Sources
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Division 6: Batch Processes
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Section 115.167.....................  Exemptions....................       9/28/2005  7/10/2009 [Insert FR page
                                                                                number where document
                                                                                begins].
Section 115.169.....................  Counties and Compliance              9/28/2005  7/10/2009 [Insert FR page
                                       Schedules.                                      number where document
                                                                                begins].

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Subchapter E--Solvent-Using Processes
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Division 2: Surface Coating Processes
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Section 115.427.....................  Exemptions....................       9/28/2005  7/10/2009 [Insert FR page
                                                                                number where document
                                                                                begins].
Section 115.429.....................  Counties and Compliance              9/28/2005  7/10/2009 [Insert FR page
                                       Schedules.                                      number where document
                                                                                begins].

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

     (e) * * *
* * * * *

                                  EPA-Approved Nonregulatory Provisions and Quasi-Regulatory Measures in the Texas SIP
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           State
        Name of SIP provision             Applicable geographic or      submittal/          EPA approval date                      Comments
                                             nonattainment area       effective date
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
VOC and NOX RACT demonstration for     Beaumont/Port Arthur Area:          9/28/2005  7/10/2009 [Insert FR page
 the 1-hour ozone NAAQS.                Hardin, Jefferson, and                         number where document
                                        Orange Counties.                               begins].
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. E9-16270 Filed 7-9-09; 8:45 am]

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