[Federal Register Volume 83, Number 84 (Tuesday, May 1, 2018)]
[Notices]
[Pages 19128-19130]
[FR Doc No: 2018-09114]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83104; File No. SR-ISE-2018-37]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to Regular
Order Fees and Rebates

April 25, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 11, 2018, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') 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 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 amend ISE's Schedule of Fees at Section I,
entitled ``Regular Order Fees and Rebates.''
    The text of the proposed rule change is available on the Exchange's
website at http://ise.cchwallstreet.com/, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to amend the ISE
Schedule of Fees at Section I, entitled ``Regular Order Fees and
Rebates.'' This proposed rule change is intended to make changes to:
(i) Increase Taker Fees for Market Makers,\3\ Non-Nasdaq ISE Market
Makers \4\ (FarMM) and Professional Customers; \5\ (ii) increase Fees
for Responses to ISE's Price Improvement Mechanism \6\ (``PIM'') Orders
for Market Makers, Non-Nasdaq ISE Market Makers (FarMM), Firm
Proprietary \7\/Broker Dealers,\8\ Professional Customers, and Priority
Customers; \9\ and (iii) increase the amount assessed to a Member,
other than for a Priority Customer, that executes an average daily
volume (``ADV'') of 12,500 or more contracts in the PIM.
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    \3\ ``Market makers'' refers to ``Competitive Market Makers''
and ``Primary Market Makers'' collectively. See ISE Rule 100(a)(28).
    \4\ A ``Non-Nasdaq ISE Market Maker'' is a market maker as
defined in Section 3(a)(38) of the Securities Exchange Act of 1934,
as amended, registered in the same options class on another options
exchange. See Preface to ISE Schedule of Fees.
    \5\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer. See Preface to
ISE Schedule of Fees.
    \6\ The Price Improvement Mechanism is a process by which an
Electronic Access Member can provide price improvement opportunities
for a transaction wherein the Electronic Access Member seeks to
facilitate an order it represents as agent, and/or a transaction
wherein the Electronic Access Member solicited interest to execute
against an order it represents as agent (a ``Crossing
Transaction''). See ISE Rule 723.
    \7\ A ``Firm Proprietary'' order is an order submitted by a
Member for its own proprietary account. See Preface to ISE Schedule
of Fees.
    \8\ ``Broker-Dealer'' order is an order submitted by a Member
for a broker-dealer account that is not its own proprietary account.
See Preface to ISE Schedule of Fees.
    \9\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in Nasdaq ISE Rule
100(a)(37A). Unless otherwise noted, when used in the Schedule of
Fees the term ``Priority Customer'' includes ``Retail'' as defined
in the Schedule of Fees. See Preface to ISE Schedule of Fees.
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Taker Fees
    The Exchange proposes to increase Regular Order Taker Fees for
Market Makers, Non-Nasdaq ISE Market Makers (FarMM) and Professional
Customers. Today, a Market Maker is assessed a $0.44 per contract Taker
Fee for Regular Orders. The Exchange proposes to increase the Market
Maker Taker Fee to $0.45 per contract. Today, Non-Nasdaq ISE Market
Makers (FarMM) and Professional Customer are assessed a $0.45 per
contract Taker Fees for Regular Orders. The Exchange proposes to
increase the Non-Nasdaq ISE Market Makers (FarMM) and Professional
Customer Taker Fees to $0.46 per contract. The Exchange will continue
to assess a Firm Proprietary/Broker Dealer a Taker Fee of $0.46 per
contract and assess a Priority Customer a $0.44 per contract Taker Fee.
Fees for Reponses to PIM Orders
    The Exchange proposes to increase Fees for Reponses to PIM Orders
for all market participants. Today, a Market Maker, Non-Nasdaq ISE
Market Maker (FarMM), Firm Proprietary/Broker Dealer, Professional
Customer, and Priority Customer are assessed a Regular Order Fee for
Responses to PIM Orders of $0.20 per contact. The Exchange proposes to
assess all market participants a Regular Order Fee for Responses to PIM
Orders of $0.25 per contact.

Fees for PIM Orders
    The Exchange proposes to increase the amount assessed to a Member,
other than for a Priority Customer, that executes an ADV of 12,500 or
more contracts in the PIM. Today, other than a Priority Customer order,
the Exchange assesses non-Priority Customer market participants a fee
of $0.05 per contract for orders executed by Members that execute an
ADV of 7,500 or more contracts in the PIM in a given month. Today,
Members that execute an ADV of 12,500 or more contracts in the PIM will
not be assessed a fee. The Exchange proposes to amend the amount
assessed to a Member that executed an ADV of 12,500 or more contracts
in the PIM a fee of $0.02 per contract. This $0.02 per contract fee
represents an increase as the Member that executed an ADV of 12,500 or
more contracts in the PIM is not charged a fee today.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\11\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4) and (5).
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Taker Fees
    The Exchange's proposal to increase Regular Order Taker Fees for
Market Makers from $0.44 to $0.45 per contract and increase Taker Fees
for Non-Nasdaq ISE Market Makers (FarMM) and Professional Customers
from $0.45 to $0.46 per contract is reasonable because despite the
increase to these Regular Order Taker Fees the fees remain competitive.
    The Exchange's proposal to increase Regular Order Taker Fees for
Market Makers from $0.44 to $0.45 per contract and increase Taker Fees
for Non-Nasdaq ISE Market Makers (FarMM) and Professional Customers
from $0.45 to $0.46 per contract is equitable and not unfairly
discriminatory because all market participants will be assessed a
similar Taker Fee, except that Market Makers and Priority Customers
will continue to be assessed a lower fee. The Exchange believes that
assessing a lower Taker Fee for Priority Customers is reasonable
because Priority Customer order flow enhances liquidity on the Exchange
for the benefit of all market participants and benefits all market
participants by providing more trading opportunities, which attracts
Market Makers. Further, assessing a lower Taker Fee for Market Makers
is reasonable because Market Makers add value through quoting
obligations \12\ and the commitment of capital. Encouraging Market
Makers to add greater liquidity benefits all market participants in the
quality of order interaction.
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    \12\ See ISE Rule 804.
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Fees for Reponses to PIM Orders
    The Exchange's proposal to increase Regular Order Fees for Reponses
to PIM Orders for all market participants from $0.20 to $0.25 per
contract is reasonable because despite the increase to these Regular
Order Taker Fees the fees remain competitive and all market
participants, other than Priority Customers, have an opportunity to
decrease there PIM Fees by executing a greater amount of order flow.
    The Exchange's proposal to increase Regular Fees for Reponses to
PIM Orders for all market participants from $0.20 to $0.25 per contract
is equitable and not unfairly discriminatory because the Exchange is
assessing all market participants the same Fee for Reponses to PIM
Orders.
Fees for PIM Orders
    The Exchange's proposal to increase the amount assessed to a
Member, other than for a Priority Customer, that executes an ADV of
12,500 or more contracts in the PIM from $0.00 to $0.02 per contract is
reasonable because despite the increase to PIM Order fees, the Exchange
continues to offer market participants, other than Priority Customers,
the ability to reduce fees by executing a certain amount of eligible
contracts, in this case ADV of 12,500 or more contracts.
    The Exchange's proposal to increase the amount assessed to a
Member, other than for a Priority Customer, that executes an ADV of
12,500 or more contracts in the PIM from $0.00 to $0.02 per contract is
equitable and not unfairly discriminatory because today all market
participants, except Priority Customers, are assessed a $0.10 per
contract fee for executing PIM orders. Priority Customers are not
assessed a Fee for PIM Orders. Non-Priority Customer market
participants have the opportunity today to decrease their PIM Orders
Fee from $0.10 to $0.05 per contract provided a Member executes an ADV
of 7,500 or more contracts in the PIM in a given month. With this
proposal, all non-Priority Customer market participants have the
opportunity today to decrease their PIM Orders Fee from $0.10 to $0.02
per contract provided Members execute an ADV of 12,500 or more
contracts in the PIM in a given month.

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

    The Exchange 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. In terms of inter-market
competition, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive, or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees to remain competitive with other exchanges and with
alternative trading systems that have been exempted from compliance
with the statutory standards applicable to exchanges. Because
competitors are free to modify their own fees in response, and because
market participants may readily adjust their order routing practices,
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited. While
this proposal increases various fees, the Exchange believes that its
pricing remains competitive. Below the Exchange addresses, for each
proposed, change the reasons why it believes this proposal does not
impose a burden on intra-market competition.
Taker Fees
    The Exchange's proposal to increase Regular Order Taker Fees for
Market Makers from $0.44 to $0.45 per contract and increase Taker Fees
for Non-Nasdaq ISE Market Makers (FarMM) and Professional Customers
from $0.45 to $0.46 per contract does not impose an undue burden on
competition because all market participants will be assessed a similar
Taker Fee, except that Market Makers and Priority Customers will
continue to be assessed a lower fee. The Exchange believes that
assessing a lower Taker Fee for Priority Customers is reasonable
because Priority Customer order flow enhances liquidity on the Exchange
for the benefit of all market participants and benefits all market
participants by providing more trading opportunities, which attracts
market makers. Further, assessing a lower Taker Fee for Market Makers
is reasonable because Market Makers add value

through quoting obligations \13\ and the commitment of capital.
Encouraging Market Makers to add greater liquidity benefits all market
participants in the quality of order interaction.
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    \13\ See ISE Rule 804.
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Fees for Reponses to PIM Orders
    The Exchange's proposal to increase Regular Order Fees for Reponses
to PIM Orders for all market participants from $0.20 to $0.25 per
contract does not impose an undue burden on competition because the
Exchange is assessing all market participants the same Fee for Reponses
to PIM Orders.
Fees for PIM Orders
    The Exchange's proposal to increase the amount assessed to a
Member, other than for a Priority Customer, that executes an ADV of
12,500 or more contracts in the PIM from $0.00 to $0.02 per contract
does not impose an undue burden on competition because today all market
participants, except Priority Customers, are assessed a $0.10 per
contract fee for executing PIM orders. Priority Customers are not
assessed a Fee for PIM Orders. Non-Priority Customer market
participants have the opportunity today to decrease their PIM Order Fee
from $0.10 to $0.05 per contract provided a Member executes an ADV of
7,500 or more contracts in the PIM in a given month. With this
proposal, all non-Priority Customer market participants have the
opportunity today to decrease their PIM Order Fee from $0.10 to $0.02
per contract provided Members execute an ADV of 12,500 or more
contracts in the PIM in a given month.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\14\ and Rule 19b-4(f)(2) \15\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is: (i) Necessary or
appropriate in the public interest; (ii) for the protection of
investors; or (iii) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
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    \14\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \15\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-ISE-2018-37 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE-2018-37. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-ISE-2018-37 and should be submitted on
or before May 22, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-09114 Filed 4-30-18; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 20 (Tuesday, January 31, 2023)]
[Notices]
[Pages 6349-6351]
[FR Doc No: 2023-01880]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96749; File No. SR-ICEEU-2023-002]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to the ICE Clear Europe Delivery Procedures

January 25, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 12, 2023, ICE Clear Europe Limited (``ICE Clear Europe'' or
the ``Clearing House'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule changes described in
Items I, II and III below, which Items have been prepared primarily by
ICE Clear Europe. ICE Clear Europe filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(4)(ii)
thereunder,\4\ such that the proposed rule change was immediately
effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing
House'') proposes to amend its Delivery Procedures (``Delivery
Procedures'') to make certain clarifications and updates.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, ICE Clear Europe 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. ICE Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(a) Purpose
    The amendments to Part A, which applies to ICE Endex Deliverable EU
Emissions Contracts, would reflect that, as provided in ICE Endex's
Circular E22/012,\5\ ICE Endex will delist Aviation Emissions Allowance
or ``EUAA'' Futures Contracts following the expiry of the December 2022
contract month and, commencing with the January 2023 contract month,
EUAAs would become eligible for delivery under the existing ICE Endex
Carbon Emissions Allowance or ``EUA'' daily and monthly Contracts.\6\
Conforming changes would be made in Part A, including to remove
references to ``ICE Endex EUAA Futures Contracts'' and to reflect that
EUAAs may be delivered under the delivery specifications applicable to
the EUA daily and monthly contracts (through an amendment to the term
Carbon Emission Allowance Contract and related changes in the delivery
timetable). Certain related drafting amendments would be made in Part A
to reflect such updates including the removal of related definitions
and other terms (for example, the removal of the

definitions of ``Allowance Type'' and ``Aviation Emissions Allowance
Contract'') which would no longer be applicable.
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    \5\ ICE Endex Circular E22/012 is available at the following
website: https://www.theice.com/publicdocs/endex/circulars/E22012.pdf.
    \6\ Accordingly, the amendments to Part A will become operative
following expiry of the December 2022 contract month.
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    The definition for the term ``Communication Link'' would be
included in Part A in place of the cross-reference to the definition
assigned in the ICE Endex Rules. The amendments provide that
``Communication Link'' means the electronic exchange of messages or
notifications by which Buyers and Sellers communicate with the
Registry, and/or by which the Registry communicates with the European
Union Transaction Log which is necessary to facilitate a Transfer
Request. This update is intended to improve clarity. The definition of
``Emissions Directive'' would be amended to include a reference to the
most recent relevant EU directive, Directive 2018/410 of the European
Parliament and of the European Council of 14 March 2018. The amendments
also amend the definition of the term ``Transfer Request'' to mean a
request to affect a transfer of an EUA and/or EUAA submitted by a
Seller to the Registry as required by the Registry Regulations,
relevant applicable law and otherwise in accordance with the ICE Clear
Europe Rules and ICE Endex Rules. Previously, such definition crossed-
referenced a definition of ``Allowance Transfer Request'' which was not
defined in the Delivery Procedures. Separate definitions of ``Aviation
Emissions Allowance Transfer Request'' and ``Carbon Emissions Allowance
Transfer Request'' would be removed as unnecessary given the revised
definition of Transfer Request. Certain other non-substantive drafting
clarifications would be made.
Timing for EFP Reporting
    The amendments to Parts D (which apply to ICE Futures UK NBP
Natural Gas Daily Futures), F (which applies to ICE Endex Dutch TTF
Natural Gas Daily Futures), and EE (which applies to ICE Endex Austrian
CEGH VTP Natural Gas Daily Futures) are intended to address
inconsistencies regarding the timing of reporting of Exchange for
Physicals (EFP) and Exchange for Swaps (EFS) transactions related to
certain contracts. The amendments to Part D would correct Section
2.5(b) to state that ICE Futures UK NBP Natural Gas Daily Futures cease
trading at 17:00 hours on the Business Day prior to the Delivery Day,
to be consistent with exchange rules. The amendments to Part D would
provide in Section 2.6 that for ICE Futures UK NBP Natural Gas Daily
Futures, in accordance with the ICE Clear Europe Clearing Rules, EFPs
and EFSs may be posted up to 30 minutes following the cessation of
trading. (The change thus eliminates an inconsistency with exchange
rules.) Such timing update would also be reflected in the delivery
table for the same contracts in Section 5.2. In the delivery timetable
for ICE Endex Dutch TTF Natural Gas Daily Futures in Section 6.2 of
Part F, the amendments would clarify that EFPs and EFS may be posted up
to 30 minutes following the cessation of trading (in order to make the
timetable consistent with paragraph 3.6 of Part F). The amendments
would also update the delivery timetable for ICE Endex Austrian CEGH
VTP Natural Gas Daily Futures in Section 8 of Part EE such that the
time specified in such table reflects the narrative which provides that
EFPs and EFSs may be posted up to 30 minutes following the cessation of
trading.
Changes to Naming Conventions
    To apply consistency to the contract names of certain natural gas
futures contracts, the Clearing House would change the name of ``TTF
Natural Gas Futures'' to ``Dutch TTF Natural Gas Futures'', ``TTF
Natural Gas Daily Futures'' to ``Dutch TTF Natural Gas Daily Futures'',
``TTF Natural Gas Working Days Next Week'' to ``Dutch TTF Natural Gas
Working Days Next Week, ``UK Natural Gas Futures'' to ``UK NBP Natural
Gas Futures'', ``UK Natural Gas Daily Futures'' to ``UK NBP Natural Gas
Daily Futures'', ``UK Natural Gas (EUR/MWh) Futures'' to ``UK NBP
Natural Gas (EUR/MWh) Futures'', ``PSV Natural Gas Futures'' to
``Italian PSV Natural Gas'', ``ICE Endex VTP Natural Gas Futures'' and
``CEGH Austrian VTP Natural Gas Futures'' to ``ICE Endex Austrian CEGH
VTP Natural Gas Futures'', ``ICE Endex VTP Natural Gas Daily Future''
to ``ICE Endex Austrian CEGH VTP Natural Gas Daily Futures, and ``ICE
Endex PEG Natural Gas Futures'' to ``ICE Endex French PEG Natural Gas
Futures''. Such changes would be made where relevant in Parts D (which
applies to UK natural gas futures contracts), F (which applies to ICE
Endex Dutch natural gas futures), AA (which applies to Italian natural
gas futures), EE (which applies to Austrian natural gas futures), and
HH (which applies to the French natural gas futures) of the Delivery
Procedures. Paragraphs 5 and 13 of the introductory section to the
Delivery Procedures would also be updated to reflect the name changes.
Delisting of Belgian ZTP Natural Gas Contracts
    Part I of the Delivery Procedures (which applied to ICE Endex ZTP
Natural Gas Futures Contracts) would be deleted in its entirety as such
contracts are no longer listed for trading at ICE Endex. Similarly,
Part J would be amended to remove all references to ICE Endex Spot
Market ZTP Natural Gas Spot Contracts and ICE Endex Spot Market ZTPL
Natural Gas Spot Contracts, which are also no longer listed for trading
at ICE Endex. Corresponding changes would be made in paragraph 5 of the
introductory section of the Delivery Procedures and in the Table of
Contents.
Delivery Timetable for Deliverable US Emissions Contracts
    The amendments would revise the delivery timetable in Part N (which
applies to ICE Deliverable US Emissions Contracts) to remove
unnecessary provisions in the final row relating to confirmation of
delivery on the Delivery Day. The relevant obligations relating to
confirmation of delivery are already covered in the preceding rows of
the timetable. The remaining language in that row would be removed in
order to avoid any incorrect implication that delivery could be made
following the relevant Delivery Day. The amendments do not change the
terms and conditions of the relevant contract.
Other Updates
    Updates to the table of contents and various section headings would
be made to conform to changes described above. A conforming reference
to the ICE Endex Austrian CEGH VTP Natural Gas Daily Futures Contract
would be added in paragraph 5.1 (such reference had previously been
omitted).
(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendments to the
Delivery Procedures are consistent with the requirements of Section 17A
of the Act \7\ and the regulations thereunder applicable to it. In
particular, Section 17A(b)(3)(F) of the Act \8\ requires, among other
things, that the rules of a clearing agency be designed to promote the
prompt and accurate clearance and settlement of securities transactions
and, to the extent applicable, derivative agreements, contracts, and
transactions, the safeguarding of securities and funds in the custody
or control of the clearing agency or for which it is responsible, and
the protection of investors and the

public interest. The proposed changes are intended to make a number of
updates and clarifications to the Delivery Procedures for physically
settled F&O Contracts. The amendments remove from the Delivery
Procedures certain contracts that have been delisted by the relevant
exchange. The amendments also clarify the deadline for submission of
EFPs, EFSs for certain contracts and update relevant naming
conventions, and remove duplicative information, among other
clarifications and drafting updates. The amendments would not otherwise
affect the manner in which such contracts are cleared and settled.
Accordingly, ICE Clear Europe believes that the Delivery Procedures, as
amended, are sufficient to support clearing of such contracts and to
manage the risks associated with such contracts. As a result, in ICE
Clear Europe's view, the amendments would be consistent with the prompt
and accurate clearance and settlement of the contracts, the
safeguarding of funds or securities in the custody or control of the
clearing agency or for which it is responsible, and the protection of
investors and the public interest, consistent with the requirements of
Section 17A(b)(3)(F) of the Act.\9\
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    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
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    In addition, Rule 17Ad-22(e)(10) \10\ provides that ``[e]ach
covered clearing agency shall establish, implement, maintain and
enforce written policies and procedures reasonable designed to, as
applicable [. . .] establish and maintain transparent written standards
that state its obligations with respect to the delivery of physical
instruments, and establish and maintain operational practices that
identify, monitor and manage the risks associated with such physical
deliveries.'' As discussed above, the amendments would amend the
delivery specifications to make certain updates and clarifications, and
to remove provisions relating to delisted contracts. As amended, the
Delivery Procedures appropriately set out the role and responsibilities
of the Clearing House and Clearing Members with respect to physical
delivery. As a result, ICE Clear Europe believes the amendments are
consistent with the requirements of Rule 17Ad-22(e)(10).\11\
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    \10\ 17 CFR 240.17Ad-22(e)(10).
    \11\ 17 CFR 240.17Ad-22(e)(10).
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(B) Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed amendments would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
amendments to the Delivery Procedures are intended to clarify certain
delivery procedures in respect of certain physically settled energy
contracts. The amendments would not materially change the rights or
obligations of Clearing Members or other market participants. ICE Clear
Europe does not believe the amendments would adversely affect
competition among Clearing Members, materially affect the cost of
clearing, adversely affect access to clearing in the new contracts for
Clearing Members or their customers, or otherwise adversely affect
competition in clearing services. Accordingly, ICE Clear Europe does
not believe that the amendments would impose any impact or burden on
competition that is not appropriate in furtherance of the purpose of
the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    Written comments relating to the proposed amendment has not been
solicited or received by ICE Clear Europe. ICE Clear Europe will notify
the Commission of any comments received with respect to the proposed
rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4 \13\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to [email protected]. Please include
File Number SR-ICEEU-2023-002 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
    All submissions should refer to File Number SR-ICEEU-2023-002. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Europe and on ICE
Clear Europe's website at https://www.theice.com/clear-europe/regulation.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ICEEU-2023-002 and should be
submitted on or before February 21, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-01880 Filed 1-30-23; 8:45 am]
BILLING CODE 8011-01-P


10.2.1 The heat exchanger load side water flow meter shall be calibrated within the flow range used for the test run using NIST-traceable methods. Verify the calibration of the water flow meter before and after each test run and at least once during each test run by comparing the water flow rate indicated by the flow meter to the mass of water collected from the outlet of the heat exchanger over a timed interval. Volume of the collected water shall be determined based on the water density calculated from section 13, Eq. 12, using the water temperature measured at the flow meter. The uncertainty in the verification procedure used shall be 1 percent or less. The water flow rate determined by the collection and weighing method shall be within 1 percent of the flow rate indicated by the water flow meter.
      10.3 Scales. The scales used to weigh the appliance and test fuel charge shall be calibrated using NIST-traceable methods at least once every 6 months.
      10.4 Flue Gas Analyzers  -  In accordance with CSA B415.1-2010, Clause 6.8.
      11.0 Conditioning
      11.1 Prior to testing, a non-catalytic appliance is to be operated for a minimum of 10 hours using a medium heat draw rate. Catalytic units shall be operated for a minimum of 50 hours using a medium heat draw rate. The pre-burn for the first test can be included as part of the conditioning requirement. If conditioning is included in pre-burn, then the appliance shall be aged with fuel meeting the specifications outlined in section 12.2 with a moisture content between 19 and 25 percent on a dry basis. Operate the appliance at a medium heat output rate (Category II or III) for at least 10 hours for non-catalytic appliances and 50 hours for catalytic appliances. Record and report hourly flue gas exit temperature data and the hours of operation. The aging procedure shall be conducted and documented by a testing laboratory.
      12.0 Procedure
      12.1 Appliance Installation. Assemble the appliance and parts in conformance with the manufacturer's written installation instructions. Clean the flue with an appropriately sized, wire chimney brush before each certification test series.
12.2 Fuel. Test fuel charge fuel shall be red (Quercus ruba L.) or white (Quercus Alba) oak 19 to 25 percent moisture content on a dry basis. Piece length shall be 80 percent of the firebox depth rounded down to the nearest 1 inch (25mm) increment. For example, if the firebox depth is 46 inches (1168mm) the piece length would be 36 inches (46 inches x 0.8 = 36.8 inches round down to 36 inches). Pieces are to be placed in the firebox parallel to the longest firebox dimension. For fireboxes with sloped surfaces that create a non-uniform firebox length, the piece length shall be adjusted for each layer based on 80 percent of the length at the level where the layer is placed. The test fuel shall be cord wood with cross section dimensions and weight limits as defined in CSA B415.1-2010, section 8.3, Table 4. The use of dimensional lumber is not allowed.
      12.2.1 Select three pieces of cord wood from the same batch of wood as the test fuel and the same weight as the average weight of the pieces in the test load +- 1.0 lb. From each of these three pieces, cut three slices. Each slice shall be (1/2)" to (3/4)" thick. One slice shall be cut across the center of the length of the piece. The other two slices shall be cut half way between the center and the end. Immediately measure the mass of each piece in pounds. Dry each slice in an oven at 220°F for 24 hours or until no further weight change occurs. The slices shall be arranged in the oven so as to provide separation between faces. Remove from the oven and measure the mass of each piece again as soon as practical in pounds.
      The moisture content of each slice, on a dry basis shall be calculated as:
MCslice = 100 ∙ (WSliceWet  -  WSliceDry)
		      WSliceDry
Where:
WSliceWet = weight of the slice before drying in pounds
WSliceDry = weight of the slice after drying in pounds
MCSlice = moisture content of the slice in % dry basis
      The average moisture content of the entire test load (MC) shall be determined using Eq. 6. Each individual slice shall have a moisture content in the range of 18 percent to 28 percent on a dry basis. The average moisture content for the test fuel load shall be in the range of 19 percent to 25 percent. Moisture shall not be added to previously dried fuel pieces except by storage under high humidity conditions and temperature up to 100ºF. Fuel moisture measurement shall begin within four hours of using the fuel batch for a test. Use of a pin-type meter to estimate the moisture content prior to a test is recommended.
      12.2.2 Firebox Volume. Determine the firebox volume in cubic feet. Firebox volume shall include all areas accessible through the fuel loading door where firewood could reasonably be placed up to the horizontal plane defined by the top of the loading door. A drawing of the firebox showing front, side and plan views or an isometric view with interior dimensions shall be provided by the manufacturer and verified by the laboratory. Calculations for firebox volume from computer aided design (CAD) software programs are acceptable and shall be included in the test report if used. If the firebox volume is calculated by the laboratory the firebox drawings and calculations shall be included in the test report.
      12.2.3 Test Fuel charge. Test fuel charges shall be determined by multiplying the firebox volume by 10 pounds (4.54 kg) per ft[3] (28L), or a higher load density as recommended by the manufacturer's printed operating instructions, of wood (as used wet weight). Select the number of pieces of cord wood that most nearly match this target weight. However, the test fuel charge cannot be less than the target of 10 pounds (4.54 kg) per ft[3] (28L).
      12.3 Sampling Equipment. Prepare the particulate emission sampling equipment as defined by EPA Method 28 WHH and the standards referenced therein.
      12.4 Appliance Start-Up. The appliance shall be fired with wood fuel of any species, size and moisture content at the laboratories discretion to bring it up to operating temperature. Operate the appliance until the water is heated to the upper operating control limit and has cycled at least two times. Then remove all unburned fuel, zero the scale and verify the scales accuracy using dead weights.
      12.4.1 Start-up Procedure for Category III and IV test runs, "hot-to-hot"
      <IP_ADDRESS> Pre-Test Burn Cycle. Following appliance start-up (section 12.4), reload appliance with oak cord wood and allow it to burn down to the specified coal bed weight. The pre-test burn cycle fuel charge weight shall be within +-10 percent of the test fuel charge weight. Piece size and length shall be selected such that charcoalization is achieved by the time the fuel charge has burned down to the required coal bed weight. Pieces with a maximum thickness of approximately 2 inches have been found to be suitable. Charcoalization is a general condition of the test fuel bed evidenced by an absence of large pieces of burning wood in the coal bed and the remaining fuel pieces being brittle enough to be broken into smaller charcoal pieces with a metal poker. Manipulations to the fuel bed prior to the start of the test run are to be done to achieve charcoalization while maintaining the desired heat output rate. During the pre-test burn cycle and at least one hour prior to starting the test run, adjust water flow to the heat exchanger to establish the target heat draw for the test. For the first test run the heat draw rate shall be equal to the manufacturer's rated heat output capacity.
      <IP_ADDRESS> Allowable Adjustments. Fuel addition or subtractions, and coal bed raking shall be kept to a minimum but are allowed up to 15 minutes prior to the start of the test run. For the purposes of this method, coal bed raking is the use of a metal tool (poker) to stir coals, break burning fuel into smaller pieces, dislodge fuel pieces from positions of poor combustion, and check for the condition of charcoalization. Record all adjustments to and additions or subtractions of fuel, and any other changes to the appliance operations that occur during pretest ignition period. During the 15-minute period prior to the start of the test run, the wood heater loading door shall not be open more than a total of 1 minute. Coal bed raking is the only adjustment allowed during this period.
      <IP_ADDRESS> Coal Bed Weight. The appliance is to be loaded with the test fuel charge when the coal bed weight is between 10 percent and 20 percent of the test fuel charge weight. Coals may be raked as necessary to level the coal bed but may only be raked and stirred once between 15 to 20 minutes prior to the addition of the test fuel charge.
      <IP_ADDRESS> Storage. The Category III and IV test runs may be done either with or without the thermal storage. If thermal storage is used the initial temperature of the storage must be 125°F or greater at the start of the test. The storage may be heated during the pre-test burn cycle or it may be heated by external means. If thermal storage is used, prior to the start of the test run, the storage tank destratification pump, shown in Figure 1, shall be operated until the total volume pumped exceeds 1.5 times the tank volume and the difference between the temperature at the top and bottom of the storage tank (TS1 and TS2) is less than 1°F. These two temperatures shall then be recorded to determine the starting average tank temperature. The total volume pumped may be based on the nominal flow rate of the destratification pump (See section 9.6). If the Category III and IV runs are done with storage, it is recognized that during the last hour of the pre-burn cycle the storage tank must be mixed to achieve a uniform starting temperature and cannot receive heat from the boiler/heater during this time. During this time period the boiler/heater might cycle or go into a steady reduced output mode. (Note  -  this would happen, for example, in a Category IV run if the actual maximum output of the boiler/heater exceed the manufacturer's rated output.) A second storage tank may be used temporarily to enable the boiler/heater to operate during this last hour of the pre-burn period as it will during the test period. The temperature of this second storage tank is not used in the calculations but the return water to the boiler/heater (after mixing device if used) must be 125°F or greater.
      12.4.2 Start-Up Procedure for Category I and II test runs, "cold-to-cold".
      <IP_ADDRESS> Initial Temperatures. This test shall be started with both the boiler/heater and the storage at a minimum temperature of 125°F. The boiler/heater maximum temperature at the start of this test shall be 135°F. The boiler/heater and storage may be heated through a pre-burn or it may be heated by external means.
      <IP_ADDRESS> Firebox Condition at Test Start. Prior to the start of this test remove all ash and charcoal from the combustion chamber(s). The loading of the test fuel and kindling should follow the manufacturer's recommendations, subject to the following constraints: Up to 10 percent kindling and paper may be used which is in addition to the fuel load. Further, up to 10 percent of the fuel load (i.e., included in the 10 lb/ft[3]) may be smaller than the main fuel. This startup fuel shall still be larger than 2".
      <IP_ADDRESS> Storage. The Category I and II test runs shall be done with thermal storage. The initial temperature of the storage must be 125°F or greater at the start of the test. The storage may be heated during the pre-test burn cycle or it may be heated by external means. Prior to the start of the test run, the storage tank destratification pump, shown in Figure 1, shall be operated until the total volume pumped exceeds 1.5 times the tank volume and the difference between the temperature at the top and bottom of the storage tank (TS1 and TS2) is less than 1°F. These two temperatures shall then be recorded to determine the starting average tank temperature. The total volume pumped may be based on the nominal flow rate of the destratification pump (See section 9.6).
      12.5 Test Runs. For all test runs, the return water temperature to the hydronic heater must be equal to or greater than 120°F (this is lower than the initial tank temperature to allow for any pipeline losses). Where the storage system is used, flow of water from the boiler/heater shall be divided between the storage tank and the heat exchanger such that the temperature change of the circulating water across the heat exchanger shall be 30 +- 5°F, averaged over the entire test run. This is typically adjusted using the system valves.
      Complete a test run in each heat output rate category, as follows:
      12.5.1 Test Run Start. For Category III and IV runs: once the appliance is operating normally and the pretest coal bed weight has reached the target value per 12.4.1, tare the scale and load the full test charge into the appliance. Time for loading shall not exceed 5 minutes. The actual weight of the test fuel charge shall be measured and recorded within 30 minutes prior to loading. Start all sampling systems.
For Category I and II runs: once the appliance has reached the starting temperature, tare the scale and load the full test charge, including kindling into the appliance. The actual weight of the test fuel charge shall be measured and recorded within 30 minutes prior to loading. Light the fire following the manufacturer's written normal startup procedure. Start all sampling systems.
      <IP_ADDRESS> Record all water temperatures, differential water temperatures and water flow rates at time intervals of one minute or less.
      <IP_ADDRESS> Record particulate emissions data per the requirements of EPA Method 28 WHH and the standards referenced therein.
      <IP_ADDRESS> Record data needed to determine Overall Efficiency (SLM) per the requirements of CSA B415.1-2010 Clauses 6.2.1, 6.2.2, 6.3, 8.5.7, 10.4.3 (a), 10.4.3(f), and <IP_ADDRESS>
      <IP_ADDRESS>.1 Measure and record the test room air temperature in accordance with the requirements of Clauses 6.2.1, 8.5.7 and 10.4.3 (g).
      <IP_ADDRESS>.2 Measure and record the flue gas temperature in accordance with the requirements of Clauses 6.2.2, 8.5.7 and 10.4.3 (f).
      <IP_ADDRESS>.3 Determine and record the Carbon Monoxide (CO) and Carbon Dioxide (CO2) concentrations in the flue gas in accordance with Clauses 6.3, 8.5.7 and 10.4.3 (i) and (j).
      <IP_ADDRESS>.4 Measure and record the test fuel weight per the requirements of Clauses 8.5.7 and 10.4.3 (h).
      <IP_ADDRESS>.5 Record the test run time per the requirements of Clause 10.4.3 (a).
      <IP_ADDRESS>.6 Record and document all settings and adjustments, if any, made to the boiler/heater as recommended/required by manufacturer's instruction manual for different combustion conditions or heat loads. These may include temperature setpoints, under and over-fire air adjustment, or other adjustments that could be made by an operator to optimize or alter combustion. All such settings shall be included in the report for each test run.
      <IP_ADDRESS> Monitor the average heat output rate on the load side of the heat exchanger based on water temperatures and flow. If the heat output rate over a 10 minute averaging period gets close to the upper or lower limit of the target range (+- 5 percent), adjust the water flow through the heat exchanger to compensate. Make changes as infrequently as possible while maintaining the target heat output rate. The first test run shall be conducted at the category IV heat output rate to validate that the appliance is capable of producing the manufacturer's rated heat output capacity.
      12.5.2 Test Fuel Charge Adjustment. It is acceptable to adjust the test fuel charge (i.e., reposition) once during a test run if more than 60 percent of the initial test fuel charge weight has been consumed and more than 10 minutes have elapsed without a measurable (1 lb or 0.5 kg ) weight change while the operating control is in the demand mode. The time used to make this adjustment shall be less than 60 seconds.
      12.5.3 Test Run Completion. For the Category III and IV, "hot-to-hot" test runs, the test run is completed when the remaining weight of the test fuel charge is 0.0 lb (0.0 kg). (WFuelBurned = Wfuel) End the test run when the scale has indicated a test fuel charge weight of 0.0 lb (0.0 kg) or less for 30 seconds.
For the Category I and II "cold-to-cold" test runs, the test run is completed; and the end of a test is defined at the first occurrence of any one of the following:
   (a)  The remaining weight of the test fuel charge is less than 1 percent of the total test fuel weight (WFuelBurned > 0.99 ∙ Wfuel);
   (b)  The automatic control system on the boiler/heater switches to an off mode. In this case the boiler/heater fan (if used) is typically stopped, and all air flow dampers are closed by the control system. Note that this off mode cannot be an "overheat" or emergency shutdown which typically requires a manual reset; or
   (c)  If the boiler/heater does not have an automatic off mode: After 90 percent of the fuel load has been consumed and the scale has indicated a rate of change of the test fuel charge of less than 1.0 lb/hr for a period of 10 minutes or longer. Note - this is not considered "stopped fuel combustion," See section <IP_ADDRESS>.
      <IP_ADDRESS> At the end of the test run, stop the particulate sampling train and Overall Efficiency (SLM) measurements, and record the run time, and all final measurement values.
      <IP_ADDRESS> At the end of the test run, continue to operate the storage tank destratification pump until the total volume pumped exceeds 1.5 times the tank volume. The maximum average of the top and bottom temperatures measured after this time may be taken as the average tank temperature at the end of the tests (TFSavg, See section 13.1). The total volume pumped may be based on the nominal flow rate of the destratification pump (See section 9.6).
      <IP_ADDRESS> For the Category I and II test runs, there is a need to determine the energy content of the unburned fuel remaining in the chamber if the remaining mass in the chamber is greater than 1 percent of the test fuel weight. Following the completion of the test, as soon as safely practical, this remaining fuel is removed from the chamber, separated from the remaining ash and weighed. This separation could be implemented with a slotted "scoop" or similar tool. A (1/4) inch opening size in the separation tool shall be used to separate the ash and charcoal. This separated char is assigned a heating value of 12,500 Btu/lb.
      12.5.4 Heat Output Capacity Validation. The first test run must produce a heat output rate that is within 10 percent of the manufacturer's rated heat output capacity (Category IV) throughout the test run and an average heat output rate within 5 percent of the manufacturer's rated heat output capacity. If the appliance is not capable of producing a heat output within these limits, the manufacturer's rated heat output capacity is considered not validated and testing is to be terminated. In such cases, the tests may be restarted using a lower heat output capacity if requested by the manufacturer. Alternatively, during the Category IV run, if the rated output cannot be maintained for a 15 minute interval, the manufacturer may elect to reduce the rated output to match the test and complete the Category IV run on this basis. The target outputs for Cat I, II, and III shall then be recalculated based on this change in rated output capacity.
      12.5.5 Additional Test Runs. Using the Manufacturer's Rated Heat Output Capacity as a basis, conduct a test for additional heat output categories as specified in 4.3. It is not required to run these tests in any particular order.
      12.5.6 Alternative Heat Output Rate for Category I. If an appliance cannot be operated in the Category I heat output range due to stopped combustion, two test runs shall be conducted at heat output rates within Category II. When this is the case, the weightings for the weighted averages indicated in section 15.1.14 shall be the average of the Category I and II weighting's and shall be applied to both Category II results. Appliances that are not capable of operation within Category II (<25 percent of maximum) cannot be evaluated by this test method.
      <IP_ADDRESS> Stopped Fuel Combustion. Evidence that an appliance cannot be operated at a Category I heat output rate due to stopped fuel combustion shall include documentation of two or more attempts to operate the appliance in heat output rate Category I and fuel combustion has stopped prior to complete consumption of the test fuel charge. Stopped fuel combustion is evidenced when an elapsed time of 60 minutes or more has occurred without a measurable (1 lb or 0.5 kg) weight change in the test fuel charge while the appliance operating control is in the demand mode. Report the evidence and the reasoning used to determine that a test in heat output rate Category I cannot be achieved. For example, two unsuccessful attempts to operate at an output rate of 10 percent of the rated output capacity are not sufficient evidence that heat output rate Category I cannot be achieved.
      12.5.7 Appliance Overheating. Appliances with their associated thermal storage shall be capable of operating in all heat output categories without overheating to be rated by this test method. Appliance overheating occurs when the rate of heat withdrawal from the appliance is lower than the rate of heat production when the unit control is in the idle mode. This condition results in the water in the appliance continuing to increase in temperature well above the upper limit setting of the operating control. Evidence of overheating includes: 1 hour or more of appliance water temperature increase above the upper temperature set-point of the operating control, exceeding the temperature limit of a safety control device (independent from the operating control  -  typically requires manual reset), boiling water in a non-pressurized system or activation of a pressure or temperature relief valve in a pressurized system.
      12.5.8 Option to Eliminate Tests in Category II and III. Following successful completion of a test run in Category I, the manufacturer may eliminate the Cat II and III tests. For the purpose of calculating the annual averages for particulates and efficiency, the values obtained in the Category I run shall be assumed to apply also to Category II and Category III. It is envisioned that this option would be applicable to systems which have sufficient thermal storage such that the fuel load in the Cat I test can be completely consumed without the system reaching its upper operating temperature limit. In this case the boiler/heater would likely be operating at maximum thermal output during the entire test and this output rate may be higher than the Manufacturer's Rated Heat Output Capacity. The Category II and III runs would then be the same as the Category I run. It may be assumed that the particulate emission values and efficiency values determined in the start-up, steady-state, and end phases of Category I are applicable in Categories II and III, for the purpose of determining the annual averages in lb/MMBtu and g/MJ (See section 13). For the annual average in g/hr, the length of time for stored heat to be drawn from thermal storage shall be determined for the test load requirements of the respective Category.
      12.5.9 Modification to Measurement Procedure in EPA Method 28 WHH to Determine Emissions Separately During the Startup, Steady-State and End Phases. With one of the two particulate sampling trains used, filter changes shall be made at the end of the startup phase and the steady state phase (See section 3.0). This shall be done to determine the particulate emission rate and particulate emission index for the startup, steady state, and end phases individually. For this one train, the particulates measured during each of these three phases shall be added together to also determine the particulate emissions for the whole run.
      12.5.10 Modification to Measurement Procedure in EPA Method 28 WHH and the standards referenced therein on Averaging Period for Determination of Efficiency by the Stack Loss Method. The methods currently defined in Method 28 WHH allow averaging over 10 minute time periods for flue gas temperature, flue gas CO2, and flue gas CO for the determination of the efficiency with the Stack Loss Method. However, under some cycling conditions the "on" period may be short relative to this 10 minute period. For this reason, during cycling operation the averaging period for these parameters may not be longer than the burner on period divided by 10. The averaging period need not be shorter than one minute. During the off period, under cycling operation, averaging periods as specified in EPA Method 28 WHH and the standards referenced therein may be used. Where short averaging times are used, however, the averaging period for fuel consumption may still be at 10 minutes. This average wood consumption rate shall be applied to all of the smaller time intervals included.
      12.6 Additional Test Runs. The testing laboratory may conduct more than one test run in each of the heat output categories specified in section 4.3. If more than one test run is conducted at a specified heat output rate, the results from at least two-thirds of the test runs in that heat output rate category shall be used in calculating the weighted average emission rate. The measurement data and results of all test runs shall be reported regardless of which values are used in calculating the weighted average emission rate.
      13.0 Calculation of Results
      13.1 Nomenclature.
COs  -  Carbon monoxide measured in the dilution tunnel at arbitrary time in ppm dry basis.
COg/min  -  Carbon monoxide emission rate in g/min.
COT  -  Total carbon monoxide emission for the full test run in grams.
CO_1  -  Startup period carbon monoxide emissions in grams.
CO_2  -  Steady-state period carbon monoxide emission in grams.
CO_3  -  End period carbon monoxide emission in grams.
ET  -  Total particulate emissions for the full test run as determined per EPA Method 28 WHH and the standards referenced therein in grams.
E1 = Startup period particulate emissions in grams.
E2 = Steady-state period particulate emissions in grams.
E3 = End period particulate emissions in grams.
E1_g/kg = Startup period particulate emission index in grams per kg fuel.
E2_g/kg = Steady-state period particulate emission index in grams per kg fuel.
E3_g/kg = End period particulate emission index in grams per kg fuel.
E1_g/hr = Startup period particulate emission rate in grams per hour.
E2_g/hr = Steady-state period particulate emission rate in grams per hour.
E3_g/hr = End period particulate emission rate in grams per hour.
Eg/MJ  -  Emission rate in grams per MJ of heat output.
Elb/mmBtu output  -  Emissions rate in pounds per million Btu's of heat output.
Eg/kg  -  Emissions factor in grams per kilogram of dry fuel burned.
Eg/hr  -  Emission factor in grams per hour.
HHV  -  Higher Heating Value of fuel = 8600 Btu/lb (19.990 MJ/kg).
LHV  -  Lower Heating Value of fuel = 7988 Btu/lb (18.567 MJ/kg).
ΔT  -  Temperature difference between cooling water entering and exiting the heat exchanger.
Qout − Total heat output in Btu's (MJ).
Qin − Total heat input available in test fuel charge in Btu's (MJ).
Qstd  -  Volumetric flow rate in dilution tunnel in dscfm.
M − Mass flow rate of water in lb/min (kg/min).
Vi  -  Volume of water indicated by a totalizing flow meter at the ith reading in gallons (liters).
Vf  -  Volumetric flow rate of water in heat exchange system in gallons per minute (liters/min).
Θ  -  Total length of burn period in hours (Θ1+ Θ2+ Θ3).
Θ1  -  Length of time of the startup period in hours.
Θ2  -  Length of time of the steady state period in hours.
Θ3  -  Length of time of the end period in hours.
Θ4  -  Length of time for stored heat to be used following a burn period in hours.
ti − Data sampling interval in minutes.
ηdel  -  Delivered heating efficiency in percent.
Fi − Weighting factor for heat output category i. See Table 2.
T1  -  Temperature of water at the inlet on the supply side of the heat exchanger, °F.
T2  -  Temperature of the water at the outlet on the supply side of the heat exchanger, °F.
T3  -  Temperature of cooling water at the inlet to the load side of the heat exchanger, °F.
T4  -  Temperature of cooling water at the outlet of the load side of the heat exchanger, °F.
T5  -  Temperature of the hot water supply as it leaves the boiler/heater, °F.
T6  -  Temperature of return water as it enters the boiler/heater, °F.
T7  -  Temperature in the boiler/heater optional destratification loop at the top of the boiler/heater, °F.
T8  -  Temperature in the boiler/heater optional destratification loop at the bottom of the boiler/heater, °F.
TIavg − Average temperature of the appliance and water at start of the test.
TIavg − (T5 + T6)/2 at the start of the test, °F. 					   Eq. 1
TFavg  -  Average temperature of the appliance and water at the end of the test.
TFavg − (T5 + T6)/2 at the end of the test, °F.  					   Eq. 2
TIS1 − Temperature at the inlet to the storage system at the start of the test.
TIS2 − Temperature at the outlet from the storage system at the start of the test.
TFS1 − Temperature at the inlet to the storage system at the end of the test.
TFS2 − Temperature at the outlet from the storage system at the end of the test.
TISavg − Average temperature of the storage system at the start of the test.
TISavg − (TIS1 + TIS2)/2 at the end of the test.     				Eq. 3
TFSavg − Average temperature of the storage system at the end of the test.
TFSavg − (TFS1 + TFS2)/2.        							   Eq. 4
MC  -  Fuel moisture content in percent dry basis.
σ  -  Density of water in pounds per gallon.
σInitial  -  Density of water in the boiler/heater system at the start of the test in pounds per gallons.
σboiler/heater  -  Density of water in the boiler/heater system at arbitrary time during the test in pounds per gallon.
Cp  -  Specific heat of water in Btu /lb °-F.
Csteel − Specific heat of steel (0.1 Btu/ lb -ºF).
Vboiler/heater  -  total volume of water in the boiler/heater system on the weight scale in gallons.
Wfuel  -  Fuel charge weight, as-fired or "wet", in pounds (kg).
Wfuel_1 − Fuel consumed during the startup period in pounds (kg).
Wfuel_2  -  Fuel consumed during the steady state period in pounds (kg).
Wfuel_3  -  Fuel consumed during the end period in pounds (kg).
WFuelBurned  -  Weight of fuel that has been burned from the start of the test to an arbitrary time, including the needed correction for the change in density and weight of the water in the boiler/heater system on the scale in pounds (kg).
 WRemainingFuel  -  weight of unburned fuel separated from the ash at the end of a test. Useful only for Cat I and Cat II tests.
 Wapp − Weight of empty appliance in pounds (kg).
 Wwat  -  Weight of water in supply side of the system in pounds (kg).
 WScaleInitial  -  weight reading on the scale at the start of the test, just after the test load has been added in pounds (kg).
 WScale  -  Reading of the weight scale at arbitrary time during the test run in pounds (kg).
 WStorageTank − Weight of the storage tank empty in pounds (kg).
 WWaterStorage − Weight of the water in the storage tank at TISavg in pounds (kg).
       13.2 After the test is completed, determine the particulate emissions ET in accordance with EPA Method 28 WHH and the standards referenced therein.
      13.3 Determination of the weight of fuel that has been burned at arbitrary time
      For the purpose of tracking the consumption of the test fuel load during a test run the following may be used to calculate the weight of fuel that burned since the start of the test:
WFuelBurned = (WScaleInitial  -  WScale) + VBoiler/heater ∙ (σInitial  -  σboiler/heater) 			 Eq. 5
Water density, σ, is calculated using Equation 12.
      13.4 Determine Average Fuel Load Moisture Content.
 MC = ∑ WSliceWet_i  -  MCSlice_i 					 Eq. 6
		∑ WSliceWet_i
      13.5 Determine heat input.
Qin = (Wfuel/(1+(MC/100))) x HHV, Btu (MJ).     				   Eq. 7
Qin LHV = (Wfuel/(1+(MC/100))) x LHV, Btu (MJ).     		Eq. 8
      13.5.1 Correction to Qin for the Category I and II tests, where there is greater than 1 percent of the test fuel charge in the chamber at the end of the test period.
QInCorrected = Qin  -  WRemaining ∙ 12,500 Btu	 					   Eq. 9
				          lb
      13.6 Determine heat output, efficiency, and emissions
      13.6.1 Determine heat output as:
Qout = Σ [Heat output determined for each sampling time interval] + Change in heat stored in the appliance + Change in heat in storage tank.
Qout = Σ[Cpi ∙Δ Ti ∙ Mi ∙ ti] + (Wapp ∙ Csteel + Wwater ∙ Cpa) ∙ (TFavg  -  TIavg)
+ (WStorageTank ∙ Csteel + WWaterStorage ∙ Cpa) ∙ (TFSavg  -  TISavg) Btu (MJ) 	 	 Eq. 10
Note: The subscript (i) indicates the parameter value for sampling time interval ti.
Mi = Mass flow rate = gal/min x Density of Water (lb/gal) = lb/min.
Mi=Vfi · σi, lb/min.         							 	 Eq. 11
σ i = (62.56 + ( -.0003413 x T3i ) + ( -.00006225 x T3i[2] )) 0.1337, lbs/gal.  	 Eq. 12
Cp = 1.0014 + ( -.000003485 x T3i ) Btu/lb-ºF.      				 Eq. 13
Csteel = 0.1 Btu/lb-ºF.
Cpa = 1.0014 + (-.000003485 X (TIavg +TFavg)/2), Btu/lb-ºF. 	 	 	 Eq. 14
Vfi = (Vi  - Vi-1)/(ti-ti-1), gal/min.        						 Eq. 15
Note: Vi is the total water volume at the end of interval i and Vi-1 is the total water volume at the beginning of the time interval. This calculation is necessary when a totalizing type water meter is used.
      13.6.2 Determine Heat Output Rate Over Burn Period (Θ1+ Θ2+ Θ3) as:
Heat Output Rate = Qout/Θ, Btu/hr (MJ/hr).     Eq. 16
      13.6.3 Determine Emission Rates and Emission Factors as:
Eg/MJ = ET/(Qout x 0.001055), g/MJ.     Eq. 17
Elb/MM Btu output = (ET/453.59)/(Qout x 10[-6]), lb/MMBtu Out.    	Eq. 18
Eg/kg = ET/(Wfuel/(1+MC/100)), g/dry kg.     Eq. 19
Eg/hr = ET/(Θ1+ Θ2+ Θ3+ Θ4), g/hr.				 Eq. 20
Θ4= (WStorageTank ∙ Csteel + WWaterStorage ∙ Cpa) ∙ (TFSavg  -  TISavg)/(Qout /Θ)        	 Eq. 21
If thermal storage is not used in a Category III or IV run, then Θ4 = 0
E1_g/kg = E1/(Wfuel_1/(1+MC/100)), g/dry kg
E2_g/kg = E2/(Wfuel_2/(1+MC/100)), g/dry kg
E3_g/kg = E3/(Wfuel_3/(1+MC/100)), g/dry kg
E1_g/hr = E1/Θ1, g/hr
E2_g/hr = E2/Θ2, g/hr
E3_g/hr = E3/Θ3, g/hr
      13.6.4 Determine delivered efficiency as:
ηdel = (Qout/QInCorrected) x 100, %.       						 Eq. 22
ηdel LHV = (Qout/Qin LHV) x 100, %.       						 Eq. 23
      13.6.5 Determine ηSLM - Overall Efficiency, also known as Stack Loss Efficiency, using Stack Loss Method (SLM).
      For determination of the average overall thermal efficiency (ηSLM) for the test run, use the data collected over the full test run and the calculations in accordance with CSA B415.1-2010, Clause 13.7 except for 13.7.2 (e), (f), (g), and (h), use the following average fuel properties for oak: %C = 50.0, %H = 6.6, %O = 43.2, %Ash = 0.2.
      <IP_ADDRESS> Whenever the CSA B415.1-2010 overall efficiency is found to be lower than the overall efficiency based on load side measurements, as determined by Eq. 22 of this method, section 14.1.7 of the test report must include a discussion of the reasons for this result. For a test where the CSA B415.1-2010 overall efficiency SLM is less than 2 percentage points lower than the overall efficiency based on load side measurements, the efficiency based on load side measurements shall be considered invalid. [Note on the rationale for the 2 percentage points limit. The SLM method does not include boiler/heater jacket losses and, for this reason, should provide an efficiency which is actually higher than the efficiency based on the energy input and output measurements or "delivered efficiency." A delivered efficiency that is higher than the efficiency based on the SLM could be considered suspect. A delivered efficiency greater than 2 percentage points higher than the efficiency based on the SLM, then, clearly indicates a measurement error.]
      13.6.6 Carbon Monoxide Emissions
      For each minute of the test period, the carbon monoxide emission rate shall be calculated as:
COg/min = Qstd ∙ COs ∙ 3.298x10[-5]							 Eq. 24
      Total CO emissions for each of the three test periods (CO_1, CO_2, CO_3) shall be calculated as the sum of the emission rates for each of the 1 minute intervals.
Total CO emission for the test run, COT, shall be calculated as the sum of CO_1, CO_2, and CO_3.
      13.7 Weighted Average Emissions and Efficiency.
      13.7.1 Determine the weighted average emission rate and delivered efficiency from the individual tests in the specified heat output categories. The weighting factors (Fi) are derived from an analysis of ASHRAE Bin Data which provides details of normal building heating requirements in terms of percent of design capacity and time in a particular capacity range  -  or "bin" - over the course of a heating season. The values used in this method represent an average of data from several cities located in the northern United States.
Weighted average delivered efficiency: ηavg = Σ ηi x Fi, %. 			 Eq. 25
Weighted average emissions: Eavg = Σ Ei x Fi, %     				 Eq. 26
      If, as discussed in section 12.5.8, the option to eliminate tests in Category II and III is elected, the values of efficiency and particulate emission rate as measured in Category I, shall be assigned also to Category II and III for the purpose of determining the annual averages.
      14.0 Report
      14.1.1 The report shall include the following:
      14.1.2 Name and location of the laboratory conducting the test.
      14.1.3 A description of the appliance tested and its condition, date of receipt and dates of tests.
      14.1.4 A description of the minimum amount of external thermal storage that is required for use with this system. This shall be specified both in terms of volume in gallons and stored energy content in Btu with a storage temperature ranging from 125 °F to the manufacturer's specified setpoint temperature.
      14.1.5. A statement that the test results apply only to the specific appliance tested.
      14.1.6 A statement that the test report shall not be reproduced except in full, without the written approval of the laboratory.
      14.1.7 A description of the test procedures and test equipment including a schematic or other drawing showing the location of all required test equipment. Also, a description of test fuel sourcing, handling and storage practices shall be included.
      14.1.8 Details of deviations from, additions to or exclusions from the test method, and their data quality implications on the test results (if any), as well as information on specific test conditions, such as environmental conditions.
      14.1.9 A list of participants and their roles and observers present for the tests.
      14.1.10 Data and drawings indicating the fire box size and location of the fuel charge.
      14.1.11 Drawings and calculations used to determine firebox volume.
      14.1.12 Information for each test run fuel charge including piece size, moisture content and weight.
      14.1.13 All required data and applicable blanks for each test run shall be provided in spreadsheet format both in the printed report and in a computer file such that the data can be easily analyzed and calculations easily verified. Formulas used for all calculations shall be accessible for review.
      14.1.14 For each test run, Θ1,Θ2, Θ3, the total CO and particulate emission for each of these three periods, and Θ4.
      14.1.15 Calculated results for delivered efficiency at each heat output rate and the weighted average emissions reported as total emissions in grams, pounds per million Btu of delivered heat, grams per MJ of delivered heat, grams per kilogram of dry fuel and grams per hour. Results shall be reported for each heat output category and the weighted average.
      14.1.16 Tables 1A, 1B, 1C, 1D, 1E and 2 must be used for presentation of results in test reports.
      14.1.17 A statement of the estimated uncertainty of measurement of the emissions and efficiency test results.
      14.1.18 A plot of CO emission rate in grams/minute vs. time, based on 1 minute averages, for the entire test period, for each run.
      14.1.19 A plot of estimated boiler/heater energy release rate in Btu/hr based on 10 minute averages, for the entire test period, for each run. This will be calculated from the fuel used, the wood heating value and moisture content, and the SLM efficiency during each 10 minute period.
      14.1.20 Raw data, calibration records, and other relevant documentation shall be retained by the laboratory for a minimum of 7 years.
      15.0 Precision and Bias
      15.1 Precision − It is not possible to specify the precision of the procedure in this test method because the appliance operation and fueling protocols and the appliances themselves produce variable amounts of emissions and cannot be used to determine reproducibility or repeatability of this test method.
      15.2 Bias − No definitive information can be presented on the bias of the procedure in this test method for measuring solid fuel burning hydronic heater emissions because no material having an accepted reference value is available.
      16.0 Keywords
      16.1 Solid fuel, hydronic heating appliances, wood-burning hydronic heaters, partial thermal storage.

Table 1A. Data Summary Part A

                                      Θ

                                     Wfuel

                                     MCave

                                      Qin

                                     Qout
                                   Category
                                    Run No
                                Load % Capacity
                                  Target Load
                                  Actual Load
                                 Actual Load
                                 Test Duration
                             Wood Weight as-fired
                                 Wood Moisture
                                  Heat Input
                                  Heat Output

                                    Btu/hr
                                    Btu/hr
                                   % of max
                                      hrs
                                      lb
                                      %DB
                                      Btu
                                      Btu
I

< 15% of max

II

16-24% of max

III

25-50% of max

IV

Max capacity

Table 1B. Data Summary Part B

                                    T2 Min
                                      ET
                                       E
                                       E
                                     Eg/hr
                                     Eg/kg
                                     ηdel
                                     ΗSLM
                                   Category
                                    Run No
                                Load % Capacity
                            Min Return Water Temp.
                              Total PM Emissions
                                PM Output Based
                                PM Output Based
                                    PM Rate
                                   PM Factor
                             Delivered Efficiency
                                    Stack
                                Loss Efficiency

                                      °F
                                       g
                                 lb/MMBtu Out
                                     g/MJ
                                     g/hr
                                     g/kg
                                       %
                                       %
I

< 15% of max

II

16-24% of max

III

25-50% of max

IV

Max capacity

Table 1C. Data Summary Part C

                                      Θ1
                                      Θ2
                                      Θ3
                                     CO_1
                                     CO_2
                                     CO_3

                                      COT

                                   Category
                                    Run No
                                Load % Capacity
                                Startup Time.
                               Steady State Time
                                   End Time
                              Startup CO emission
                           Steady State CO emission
                                End CO emission
                               Total CO emission

                                      min
                                      min
                                      min
                                       g
                                       g
                                       g
                                       g
I

< 15% of max

II

16-24% of max

III

25-50% of max

IV

Max capacity

Table 1D. Data Summary Part D

                                      E1
                                      E2
                                      E3
                                    E1_g/kg
                                    E2_g/kg

                                    E3_g/kg

                                   Category
                                    Run No
                                Load % Capacity
                                  Startup PM
                                Steady State PM
                                    End PM
                           Startup PM emission index
                           Steady State PM emission
                                     index
                             End PM emission index

                                       g
                                       g
                                       g
                                   g/kg fuel
                                   g/kg fuel
                                  g/kg fuel
I

< 15% of max

II

16-24% of max

III

25-50% of max

IV

Max capacity

Table 1E: Hang Tag Information

                                                                  MANUFACTURER:

                                                                  MODEL NUMBER:

                                                      ANNUAL EFFICIENCY RATING:
                                     ηavg

(Using higher heating value)

(Using lower heating value)

                                                            PARTICLE EMISSIONS:
                                     Eavg

GRAMS/HR (average)

LBS/MILLION Btu/hr OUTPUT

Table 2. Annual Weighting
                                   Category
                             Weighting Factor (Fi)
                                 ηdel,i x Fi
                                 Eg/MJ,i x Fi
                                 Eg/kg,i x Fi
                             Elb/MMBtu Out,i x Fi
                                 Eg/hr,i x Fi

I

                                                                          0.437

II

                                                                          0.238

III

                                                                          0.275

IV

                                                                          0.050

Totals

                                                                          1.000

Figure 1. Schematic of Equipment Test Setup

Figure 2. Schematic of Test Equipment Set-up

Note: Illustrated appliance pump location and flow path through the appliance.

      9. Part 60 is amended by revising Appendix I to read as follows:
Appendix I to Part 60 -- Owner's Manuals for Wood-Burning Heaters Subject to Subparts AAA, QQQQ, and RRRR of Part 60
      1. Introduction
      The purpose of this appendix is to provide specific instructions to manufacturers for compliance with the owner's manual provisions of subparts AAA, QQQQ, and RRRR of this part.
      2. Instructions for Preparation of Wood Heater Owner's Manuals
      2.1 Introduction
      Although the owner's manuals do not require premarket approval, EPA will monitor the contents to ensure that sufficient information is included to provide heater operation and maintenance information affecting emissions to consumers. The purpose of this section is to provide instructions to manufacturers for compliance with the owner's manual provisions of §60.536(f) of subpart AAA that applies to wood heaters, §60.5478(f) of subpart QQQQ that applies to hydronic heaters and forced-air furnaces, and §60.5490(g) of subpart RRRR that applies to masonry heaters. A checklist of topics and illustrative language is provided as instructions. Owner's manuals should be tailored to specific wood heater models, as appropriate.
      2.2 Topics Required To Be Addressed in Owner's Manual
                 (a)       Wood heater description and compliance status;
                 (b)       Tamper warning;
                 (c)       Catalyst information and warranty (if catalyst equipped);
                 (d)       Fuel selection;
                 (e)       Achieving and maintaining catalyst light-off (if catalyst equipped);
                 (f)       Catalyst monitoring (if catalyst equipped);
                 (g)       Troubleshooting catalytic equipped heaters (if catalyst equipped);
                 (h)       Catalyst replacement (if catalyst equipped);
                 (i)       Wood heater operation and maintenance; and
                 (j)       Wood heater installation: achieving proper draft.
      2.3 Sample Text/Descriptions
      (a) The following are example texts and/or further descriptions illustrating the topics identified above. Although the regulation requires manufacturers to address (where applicable) the ten topics identified above, the exact language is not specified. Manuals should be written specific to the model and design of the wood heater. The following instructions are composed of generic descriptions and texts.
      (b) If manufacturers choose to use the language provided in the example, the portion in italics should be revised as appropriate. Any manufacturer electing to use the EPA example language will be considered to be in compliance with owner's manual requirements provided that the particular language is printed in full with only such changes as are necessary to ensure accuracy.
      Example language is not provided for certain topics, since these areas are generally heater specific. For these topics, manufacturers should develop text that is specific to the operation and maintenance of their particular products.
      2.3.1 Wood Heater Description and Compliance Status
      Owner's Manuals must include:
      (a) Manufacturer and model;
      (b) Compliance status (exempt, 1990 std., 2015 std., etc.); and
      (c) Heat output range.
      Exhibit 1 -- Example Text covering (a), (b), and (c) above:
      "This manual describes the installation and operation of the Brand X, Model 0 catalytic equipped wood heater. This heater meets the U.S. Environmental Protection Agency's emission limits for wood heaters sold after January 1, 2014. Under specific test conditions this heater has been shown to deliver heat at rates ranging from 8,000 to 35,000 Btu/hr."
      2.3.2 Tamper Warning
      The following statement must be included in the owner's manual for catalyst-equipped units:
      "This wood heater contains a catalytic combustor, which needs periodic inspection and replacement for proper operation. It is against the law to operate this wood heater in a manner inconsistent with operating instructions in this manual, or if the catalytic element is deactivated or removed."
      2.3.3 Catalyst Information
      The following information must be included with or supplied in the owner's and warranty manuals:
      (a) Catalyst manufacturer and model;
      (b) Catalyst warranty details; and
      (c) Instructions for warranty claims.
      Exhibit 2 -- Example Text covering (a), (b), and (c):
      "The combustor supplied with this heater is a Brand Z, Long Life Combustor. Consult the catalytic combustor warranty also supplied with this wood heater. Warranty claims should be addressed to:
Stove or Catalyst Manufacturer____________________
Address____________________
Phone #____________________"
      <IP_ADDRESS> This section should also provide clear instructions on how to exercise the warranty (how to package for return shipment, etc.).
      2.3.4 Fuel Selection
      Owner's manuals must include:
      (a) Instructions on acceptable fuels; and
      (b) Warning against inappropriate fuels.
      Exhibit 3 -- Example Text covering (a) and (b):
      "This heater is designed to burn natural wood only. Higher efficiencies and lower emissions generally result when burning air dried seasoned hardwoods, as compared to softwoods or to green or freshly cut hardwoods.
DO NOT BURN:
:: Treated Wood
:: Coal
:: Garbage
:: Cardboard
:: Solvents
:: Colored Paper
:: Trash
      Burning treated wood, garbage, solvents, colored paper or trash may result in release of toxic fumes and may poison or render ineffective the catalytic combustor.
Burning coal, cardboard, or loose paper can produce soot, or large flakes of char or fly ash that can coat the combustor, causing smoke spillage into the room, and rendering the combustor ineffective."
      2.3.5 Achieving and Maintaining Catalyst Light-Off
Owner's manuals must describe in detail proper procedures for:
      (a) Operation of catalyst bypass (stove specific),
      (b) Achieving catalyst light-off from a cold start, and
      (c) Achieving catalyst light-off when refueling.
      <IP_ADDRESS> No example text is supplied for describing operation of catalyst bypass mechanisms (Item (a) above) since these are typically stove-specific. Manufacturers must provide instructions specific to their model describing:
      (1) Bypass position during start-up,
      (2) Bypass position during normal operation, and
      (3) Bypass position during reloading.
      Exhibit 4 -- Example Text for Item (b):
      "The temperature in the stove and the gases entering the combustor must be raised to between 500° to 700°F for catalytic activity to be initiated. During the start-up of a cold stove, a medium to high firing rate must be maintained for about 20 minutes. This ensures that the stove, catalyst, and fuel are all stabilized at proper operating temperatures. Even though it is possible to have gas temperatures reach 600°F within 2 to 3 minutes after a fire is started, if the fire is allowed to die down immediately it may go out or the combustor may stop working. Once the combustor starts working, heat generated in it by burning the smoke will keep it working."
      Exhibit 5 -- Example Text for Item (c):
      "REFUELING: During the refueling and rekindling of a cool fire, or a fire that has burned down to the charcoal phase, operate the stove at a medium to high firing rate for about 10 minutes to ensure that the catalyst reaches approximately 600°F."
      2.3.6 Catalyst Monitoring
      Owner's manuals must include:
      (a) Recommendation to visually inspect combustor at least three times during the heating season;
      (b) Discussion on expected combustor temperatures for monitor-equipped units; and
      (c) Suggested monitoring and inspection techniques.
      Exhibit 6 -- Example Text covering (a), (b) and (c):
      "It is important to periodically monitor the operation of the catalytic combustor to ensure that it is functioning properly and to determine when it needs to be replaced. A non-functioning combustor will result in a loss of heating efficiency, and an increase in creosote and emissions. Following is a list of items that should be checked on a periodic basis:
:: Combustors should be visually inspected at least three times during the heating season to determine if physical degradation has occurred. Actual removal of the combustor is not recommended unless more detailed inspection is warranted because of decreased performance. If any of these conditions exists, refer to Catalyst Troubleshooting section of this owner's manual.
:: This catalytic heater is equipped with a temperature probe to monitor catalyst operation. Properly functioning combustors typically maintain temperatures in excess of 500°F, and often reach temperatures in excess of 1,000°F. If catalyst temperatures are not in excess of 500°F, refer to Catalyst Troubleshooting section of this owner's manual.
:: You can get an indication of whether the catalyst is working by comparing the amount of smoke leaving the chimney when the smoke is going through the combustor and catalyst light-off has been achieved, to the amount of smoke leaving the chimney when the smoke is not routed through the combustor (bypass mode).
      Step 1 -- Light stove in accordance with instructions in 3.3.5.
      Step 2 -- With smoke routed through the catalyst, go outside and observe the emissions leaving the chimney.
      Step 3 -- Engage the bypass mechanism and again observe the emissions leaving the chimney.
      Significantly more smoke should be seen when the exhaust is not routed through the combustor (bypass mode). Be careful not to confuse smoke with steam from wet wood."
      2.3.7 Catalyst Troubleshooting
      The owner's manual must provide clear descriptions of symptoms and remedies to common combustor problems. It is recommended that photographs of catalyst peeling, plugging, thermal cracking, mechanical cracking, and masking be included in the manual to aid the consumer in identifying problems and to provide direction for corrective action.
      2.3.8 Catalyst Replacement
      The owner's manual must provide clear step-by-step instructions on how to remove and replace the catalytic combustor. The section should include diagrams and/or photographs.
      2.3.9 Wood Heater Operation and Maintenance
      Owner's manual must include:
      (a) Recommendations about building and maintaining a fire;
      (b) Instruction on proper use of air controls;
      (c) Ash removal and disposal;
      (d) Instruction on gasket replacement; and
      (e) Warning against overfiring.
      <IP_ADDRESS> No example text is supplied for (a), (b), and (d) since these items are model specific. Manufacturers should provide detailed instructions on building and maintaining a fire including selection of fuel pieces, fuel quantity, and stacking arrangement. Manufacturers should also provide instruction on proper air settings (both primary and secondary) for attaining minimum and maximum heat outputs and any special instructions for operating thermostatic controls. Step-by-step instructions on inspection and replacement of gaskets should also be included. Manufacturers should provide diagrams and/or photographs to assist the consumer. Gasket type and size should be specified.
      Exhibit 7 -- Example Text for Item (c):
      "Whenever ashes get 3 to 4 inches deep in your firebox or ash pan, and when the fire has burned down and cooled, remove excess ashes. Leave an ash bed approximately 1 inch deep on the firebox bottom to help maintain a hot charcoal bed."
"Ashes should be placed in a metal container with a tight-fitting lid. The closed container of ashes should be placed on a noncombustible floor or on the ground, away from all combustible materials, pending final disposal. The ashes should be retained in the closed container until all cinders have thoroughly cooled."
      Exhibit 8 -- Example Text covering Item (e):
      "DO NOT OVERFIRE THIS HEATER"
      "Attempts to achieve heat output rates that exceed heater design specifications can result in permanent damage to the heater and to the catalytic combustor if so equipped."
      2.3.10 Wood Heater Installation: Achieving Proper Draft
      Owner's manual must include:
      (a) Importance of proper draft;
      (b) Conditions indicating inadequate draft; and
      (c) Conditions indicating excessive draft.
      Exhibit 9 -- Example Text for Item (a):
      "Draft is the force which moves air from the appliance up through the chimney. The amount of draft in your chimney depends on the length of the chimney, local geography, nearby obstructions, and other factors. Too much draft may cause excessive temperatures in the appliance and may damage the catalytic combustor. Inadequate draft may cause backpuffing into the room and `plugging' of the chimney or the catalyst."
      Exhibit 10 -- Example Text for Item (b):
      "Inadequate draft will cause the appliance to leak smoke into the room through appliance and chimney connector joints."
      Exhibit 11 -- Example Text for Item (c):
      "An uncontrollable burn or a glowing red stove part or chimney connector indicates excessive draft."

Figure 1. Burn Wise Clean and Efficient Heating Checklist on the Back of the Label.