[Federal Register Volume 85, Number 25 (Thursday, February 6, 2020)]
[Notices]
[Pages 6988-6993]
[FR Doc No: 2020-02278]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88107; File No. SR-CboeBZX-2020-008]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To List
and Trade Shares of the Hartford Core Bond ETF of the Hartford Funds
Exchange-Traded Trust Under Rule 14.11(i), Managed Fund Shares

January 31, 2020.
    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 21, 2020, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'')
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 Exchange filed the proposal as
a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to list and trade shares of the Hartford Core Bond ETF (the
``Fund'') of the Hartford Funds Exchange-Traded Trust (the ``Trust'')
under Rule 14.11(i) (``Managed Fund Shares'').
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to list and trade the Shares under Rule
14.11(i), which governs the listing and trading of Managed Fund Shares
on the Exchange.\5\ The Fund will be an actively managed fund. The
shares will be offered by the Trust, which was established as a
Delaware statutory trust on September 20, 2010. The Trust is registered
with the Commission as an open-end investment company and has filed a
registration statement on behalf of the Fund on Form N-1A
(``Registration Statement'') with the Commission.\6\
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    \5\ The Commission approved Rule 14.11(i) in Securities Exchange
Act Release No. 65225 (August 30, 2011), 76 FR 55148 (September 6,
2011) (SR-BATS-2011-018) and subsequently approved generic listing
standards for Managed Fund Shares under Rule 14.11(i) in Securities
Exchange Act Release No. 78396 (July 22, 2016), 81 FR 49698 (July
28, 2016) (SR-BATS-2015-100).
    \6\ The Trust filed a post-effective amendment to the
Registration Statement on March 1, 2019 (the ``Registration
Statement''). See Registration Statement on Form N-1A for the Trust
(File Nos. 333-215165 and 811-23222). The descriptions of the Fund
and the Shares contained herein are based, in part, on information
included in the Registration Statement. The Commission has issued an
order granting certain exemptive relief to the Trust and affiliated
persons under the Investment Company Act of 1940 (the ``1940 Act'')
(15 U.S.C. 80a-1). See Investment Company Act Release No. 30695
(September 24, 2013) (File No. 812- 14178).
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    Rule 14.11(i)(4)(C)(ii)(d) requires that component securities that
in aggregate account for at least 90% of the fixed income weight of the
portfolio must satisfy at least one of five conditions. The Exchange
submits this proposal because the Fund will not meet this requirement;
\7\ however, it will meet all of the other requirements of Rule
14.11(i). The Exchange notes that this proposed exception to Rule
14.11(i)(4)(C)(ii)(d) is substantively identical to an exception
included in several other rule filings that were either immediately
effective or approved by the Commission.\8\
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    \7\ Rule 14.11(i)(4)(C)(ii)(d) provides that ``component
securities that in aggregate account for at least 90% of the fixed
income weight of the portfolio must be either: (a) From issuers that
are required to file reports pursuant to Sections 13 and 15(d) of
the Act; (b) from issuers that have a worldwide market value of its
outstanding common equity held by non-affiliates of $700 million or
more; (c) from issuers that have outstanding securities that are
notes, bonds, debentures, or evidence of indebtedness having a total
remaining principal amount of at least $1 billion; (d) exempted
securities as defined in Section 3(a)(12) of the Act; or (e) from
issuers that are a government of a foreign country or a political
subdivision of a foreign country.'' The Exchange instead is
proposing that the fixed income portion of the portfolio excluding
Non-Agency ABS and MBS, as defined below, will satisfy this 90%
requirement.
    \8\ See Securities Exchange Act Release Nos. 84047 (September 6,
2018), 83 FR 46200 (September 12, 2018) (SR-NASDAQ-2017-128) (the
``Nasdaq Approval Order''); and 85701 (April 22, 2019), 84 FR 17902
(April 26, 2019) (SR-CboeBZX-2019-016) (the ``Exchange Approval
Order''). The Exchange notes that it filed a non-controversial rule
change related to another fund issued by the Trust that allows for
an identical exception to Rule 14.11(i)(4)(C)(ii)(d). See also
Securities Exchange Act Release No. 87651 (December 3, 2019), 84 FR
67327 (December 9, 2019) (SR-CboeBZX-2019-099).
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    Hartford Funds Management Company LLC acts as adviser to the Fund
(the ``Adviser''). Wellington Management is the sub-adviser (``Sub-
Adviser'') to the Fund. State Street Bank and Trust Company is the
administrator, custodian, and transfer agent for the Trust. ALPS
Distributors, Inc. serves as the distributor for the Trust.
    Rule 14.11(i)(7) provides that, if the investment adviser or sub-
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-

dealer, such investment adviser or sub-adviser shall erect and maintain
a ``fire wall'' between the investment adviser or sub-adviser and the
broker-dealer with respect to access to information concerning the
composition and/or changes to such investment company portfolio.\9\ In
addition, Rule 14.11(i)(7) further requires that personnel who make
decisions on the investment company's portfolio composition must be
subject to procedures designed to prevent the use and dissemination of
material nonpublic information regarding the applicable investment
company portfolio. Rule 14.11(i)(7) is similar to Rule
14.11(b)(5)(A)(i), however, Rule 14.11(i)(7) in connection with the
establishment of a ``fire wall'' between the investment adviser or sub-
adviser and the broker-dealer reflects the applicable open-end fund's
portfolio, not an underlying benchmark index, as is the case with
index-based funds. The Adviser and Sub-Adviser are not a registered
broker-dealer, but the Adviser and Sub-Adviser are affiliated with a
broker-dealer and have implemented and will maintain ``fire walls''
with respect to such broker-dealer regarding access to information
concerning the composition and/or changes to the Fund's portfolio. In
addition, Adviser and Sub-Adviser personnel who make decisions
regarding the Fund's portfolio are subject to procedures designed to
prevent the use and dissemination of material nonpublic information
regarding the Fund's portfolio. In the event that (a) the Adviser or
Sub-Adviser becomes registered as a broker-dealer or newly affiliated
with another broker-dealer, or (b) any new adviser or sub-adviser is a
registered broker-dealer or becomes affiliated with a broker-dealer, it
will implement and maintain a fire wall with respect to its relevant
personnel or such broker-dealer affiliate, as applicable, regarding
access to information concerning the composition and/or changes to the
portfolio, and will be subject to procedures designed to prevent the
use and dissemination of material non-public information regarding such
portfolio.
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    \9\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and their Sub-Adviser and their
related personnel are subject to the provisions of Rule 204A-1 under
the Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
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Hartford Core Bond ETF
    According to the Registration Statement, the Fund seeks to provide
long-term total return. In order to achieve its investment objective,
under Normal Market Conditions,\10\ the Fund will invest primarily in
investment grade fixed-income securities. Under Normal Market
Conditions, the Fund will invest at least 80% of its assets (including
any borrowings for investment purposes) in fixed income securities, as
described in Rule 14.11(i)(4)(C)(ii), including: (1) Securities issued
or guaranteed as to principal or interest by the U.S. Government, its
agencies or instrumentalities; (2) non-convertible and convertible debt
securities issued or guaranteed by U.S. corporations or other issuers
(including foreign issuers); (3) asset-backed and mortgage-related
securities, including collateralized mortgage and loan obligations; and
(4) securities and loans issued or guaranteed as to principal or
interest by a sovereign government or one of its agencies or political
subdivisions (including quasi-sovereigns), supranational entities such
as development banks, non-U.S. corporations, banks or bank holding
companies, or other foreign issuers. Such holdings in fixed income
securities will meet the requirements for fixed income instruments in
Rule 14.11(i)(4)(C)(ii) except for Rule 14.11(i)(4)(C)(ii)(d), as
discussed in more detail below.
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    \10\ As provided in Rule 14.11(i)(3)(E), the term ``Normal
Market Conditions'' includes, but is not limited to, the absence of
trading halts in the applicable financial markets generally;
operational issues causing dissemination of inaccurate market
information or system failures; or force majeure type events such as
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption, or any similar intervening
circumstance.
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    Among others, such fixed income securities that may be held by the
Fund include non-agency, non-GSE,\11\ and privately-issued mortgage-
related and other asset-backed securities (collectively, ``Non-Agency
ABS and MBS''), which it generally expects to include (but not be
limited to) the following sectors: Private mortgage backed securities,
commercial mortgage backed securities, asset-backed securities
(including autos, credit cards, equipment, consumer loans), and
collateralized loan obligations. In accordance with Rule
14.11(i)(4)(C)(ii)(e), the Fund's holdings in Non-Agency ABS and MBS
will not account for more than 20% of the weight of the total
portfolio, in the aggregate.
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    \11\ A ``GSE'' is a type of financial services corporation
created by the United States Congress. GSEs include Fannie Mae and
Freddie Mac, but not Sallie Mae, which is no longer a government
entity.
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    The Fund will also generally invest up to 20% of its assets in cash
and Cash Equivalents,\12\ listed derivatives,\13\ and OTC
derivatives,\14\ although such holdings may exceed 20%. The Fund's
holdings in cash and Cash Equivalents, listed derivatives, and OTC
derivatives will be in compliance with all generic listing standards,
including those in Rules 14.11(i)(4)(C)(iii), 14.11(i)(4)(C)(iv),
14.11(i)(4)(C)(v), and 14.11(i)(4)(C)(vi).
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    \12\ As defined in Exchange Rule 14.11(i)(4)(C)(iii)(b), Cash
Equivalents are short-term instruments with maturities of less than
three months, which includes only the following: (i) U.S. Government
securities, including bills, notes, and bonds differing as to
maturity and rates of interest, which are either issued or
guaranteed by the U.S. Treasury or by U.S. Government agencies or
instrumentalities; (ii) certificates of deposit issued against funds
deposited in a bank or savings and loan association; (iii) bankers
acceptances, which are short-term credit instruments used to finance
commercial transactions; (iv) repurchase agreements and reverse
repurchase agreements; (v) bank time deposits, which are monies kept
on deposit with banks or savings and loan associations for a stated
period of time at a fixed rate of interest; (vi) commercial paper,
which are short-term unsecured promissory notes; and (vii) money
market funds.
    \13\ For purposes of this filing, listed derivatives include
only the following instruments: Treasury futures, U.S. interest rate
futures, and Eurodollar futures.
    \14\ For purposes of this filing, OTC derivatives include only
the following instruments: interest rate swaps, currency forwards,
and credit default swap indices.
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    The Fund's investments, including derivatives, will be consistent
with the 1940 Act and the Fund's investment objective and policies and
will not be used to enhance leverage (although certain derivatives and
other investments may result in leverage).\15\

That is, while the Fund will be permitted to borrow as permitted under
the 1940 Act, the Fund's investments will not be used to seek
performance that is the multiple or inverse multiple (i.e., 2Xs and
3Xs) of the Fund's primary broad-based securities benchmark index (as
defined in Form N-1A). The Fund will only use those derivatives
described above. The Fund's use of derivative instruments will be
collateralized.
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    \15\ The Fund will include appropriate risk disclosure in its
offering documents, including leveraging risk. Leveraging risk is
the risk that certain transactions of a fund, including a fund's use
of derivatives, may give rise to leverage, causing a fund to be more
volatile than if it had not been leveraged. To mitigate leveraging
risk, the Fund will segregate or earmark liquid assets determined to
be liquid by the Adviser in accordance with procedures established
by the Trust's Board of Trustees and in accordance with the 1940 Act
(or, as permitted by applicable regulations, enter into certain
offsetting positions) to cover its obligations under derivative
instruments. These procedures have been adopted consistent with
Section 18 of the 1940 Act and related Commission guidance. See 15
U.S.C. 80a-18; Investment Company Act Release No. 10666 (April 18,
1979), 44 FR 25128 (April 27, 1979); Dreyfus Strategic Investing,
Commission No-Action Letter (June 22, 1987); Merrill Lynch Asset
Management, L.P., Commission No-Action Letter (July 2, 1996).
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Discussion
    If the Fund had full flexibility to invest in a manner consistent
with its investment strategy, it might not meet the requirements of
Rule 14.11(i)(4)(C)(ii)(d) because certain Non-Agency ABS and MBS by
their nature cannot satisfy these requirements. As described above, the
Exchange is instead proposing that the fixed income portion of the
portfolio excluding Non-Agency ABS and MBS will satisfy this 90%
requirement. The Exchange believes that this alternative limitation is
appropriate because Rule 14.11(i)(4)(C)(ii)(d) is not designed for
structured finance vehicles such as Non-Agency ABS and MBS and the
overall weight of the Non-Agency ABS and MBS held by the Fund will be
limited to 20% of the total portfolio as required under Rule
14.11(i)(4)(C)(ii)(e). The Exchange also notes that the Fund's
portfolio is consistent with the policy issues underlying the rule as a
result of the diversification provided by the investments and the
Adviser's and Sub-Adviser's selection process, which closely monitors
investments to ensure maintenance of credit and liquidity standards. As
noted above, the remainder of the fixed income securities held by the
Fund will satisfy the requirements of Rule 14.11(i)(4)(C)(ii)(d) and
the remainder of the Fund's portfolio, including fixed income
securities, will meet all other applicable generic listing standards
under Rule 14.11(i)(4)(C). Further, the exception to Rule
14.11(i)(4)(C)(ii)(d) proposed herein is identical to the exception to
Rule 14.11(i)(4)(C)(ii)(d) laid out in an immediately effective rule
change related to another fund issued by the Trust.\16\ Allowing the
Fund full flexibility to implement its fixed income strategy and
further diversify its holdings to provide exposure to a broader array
of fixed income securities would allow the Fund to better achieve its
investment objective and, as such, benefit both investors [sic] in the
Fund.
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    \16\ See Securities Exchange Act Release No. 87651 (December 3,
2019) 84 FR 67327 (December 9, 2019) (SR-CboeBZX-2019-099).
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    The Exchange represents that the Shares of the Fund will comply
with all other requirements applicable to Managed Fund Shares, which
include the dissemination of key information such as the Disclosed
Portfolio,\17\ Net Asset Value,\18\ and the Intraday Indicative
Value,\19\ suspension of trading or removal,\20\ trading halts,\21\
surveillance,\22\ minimum price variation for quoting and order
entry,\23\ the information circular,\24\ and firewalls \25\ as set
forth in Exchange rules applicable to Managed Fund Shares and the
orders approving such rules. The Exchange or FINRA, on behalf of the
Exchange, or both will communicate as needed regarding trading in the
Shares and the underlying futures contracts with other markets and
other entities that are members of the Intermarket Surveillance Group
(``ISG''), and the Exchange or FINRA, on behalf of the Exchange, or
both, may obtain trading information regarding trading in the Shares
from such markets and other entities. In addition, the Exchange may
obtain information regarding trading in the Shares from market and
other entities that are members of ISG or with which the Exchange has
in place a comprehensive surveillance sharing agreement \26\ All
statements and representations made in this filing regarding the
description of the portfolio or reference assets, limitations on
portfolio holdings or reference assets, dissemination and availability
of reference asset and Intraday Indicative Values (as applicable), or
the applicability of Exchange listing rules specified in this filing
shall constitute continued listing requirements for the Shares. The
Fund has represented to the Exchange that it will advise the Exchange
of any failure by the Fund or Shares to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will surveil for compliance with the
continued listing requirements. FINRA conducts certain cross-market
surveillances on behalf of the Exchange pursuant to a regulatory
services agreement. The Exchange is responsible for FINRA's performance
under this regulatory services agreement. If the Fund is not in
compliance with the applicable listing requirements, the Exchange will
commence delisting procedures with respect to such Fund under Exchange
Rule 14.12.
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    \17\ See Rule 14.11(i)(4)(A)(ii) and 14.11(i)(4)(B)(ii).
    \18\ See Rule 14.11(i)(4)(A)(ii).
    \19\ See Rule 14.11(i)(4)(B)(i).
    \20\ See Rule 14.11(i)(4)(B)(iii).
    \21\ See Rule 14.11(i)(4)(B)(iv).
    \22\ See Rule 14.11(i)(2)(C).
    \23\ See Rule 14.11(i)(2)(B).
    \24\ See Rule 14.11(i)(6).
    \25\ See Rule 14.11(i)(7).
    \26\ For a list of the current members and affiliate members of
ISG, see www.isgportal.com. The Exchange notes that not all
components of the Disclosed Portfolio for the Fund may trade on
markets that are members of ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement.
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Availability of Information
    As noted above, the Fund will comply with the requirements under
Rule 14.11(i) related to Disclosed Portfolio, NAV, and the Intraday
Indicative Value. Intraday price quotations on fixed income securities
and OTC derivative instruments are available from major broker-dealer
firms and from third-parties, which may provide prices free with a time
delay or in real-time for a paid fee. Additionally, the intraday,
closing and settlement prices of futures contracts held by the Fund
will be readily available from the exchanges on which such products are
listed, automated quotation systems, published or other public sources,
or online information services such as Bloomberg or Reuters. Price
information for Cash Equivalents will be available from major market
data vendors. The Disclosed Portfolio will be available on the Fund's
website (www.hartfordfunds.com) free of charge. The Fund's website will
include the prospectus for the Fund and additional information related
to NAV and other applicable quantitative information. Information
regarding market price and trading volume of the Shares will be
continuously available throughout the day on brokers' computer screens
and other electronic services. Information regarding the previous day's
closing price and trading volume for the Shares will be published daily
in the financial section of newspapers. Trading in the Shares may be
halted for market conditions or for reasons that, in the view of the
Exchange, make trading inadvisable. The Exchange deems the Shares to be
equity securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
The Exchange has appropriate rules to facilitate trading in the Shares
during all trading sessions.

The Exchange prohibits the distribution of material non-public
information by its employees. Quotation and last sale information for
the Shares will be available via the CTA high-speed line.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \27\ in general and Section 6(b)(5) of the Act \28\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest in that the Shares will meet each of the continued
listing criteria in BZX Rule 14.11(i) with the exception of Rule
14.11(i)(4)(C)(ii)(d) as specifically discussed herein.
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    \27\ 15 U.S.C. 78f(b).
    \28\ 15 U.S.C. 78f(b)(5).
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    If the Fund were permitted full flexibility to invest consistent
with its investment strategy, it might not meet the requirements of
Rule 14.11(i)(4)(C)(ii)(d) because certain Non-Agency ABS and MBS by
their nature cannot satisfy these requirements. The Exchange believes
that excluding Non-Agency ABS and MBS from this calculation is
consistent with the Act because the Fund's portfolio will minimize the
risk associated with any particular holding of the Fund as a result of
the diversification provided by the investments and the Adviser's
selection process, which closely monitors investments to ensure
maintenance of credit and liquidity standards. Further, the Exchange
believes that this alternative limitation is appropriate because Rule
14.11(i)(4)(C)(ii)(d) is not designed for structured finance vehicles
such as Non-Agency ABS and MBS and the overall weight of the Non-Agency
ABS and MBS held by the Fund will be limited to 20% of the total
portfolio as required under Rule 14.11(i)(4)(C)(ii)(e). The Exchange
also notes that the Fund's portfolio will meet all of the other generic
listing standards applicable under Rule 14.11(i), which will further
act to mitigate the manipulation concerns which the rules are intended
to address. Further, the other fixed income instruments, excluding Non-
Agency ABS and MBS, held by the Fund will satisfy the 90% requirement
under Rule 14.11(i)(4)(C)(ii)(d). Consistent with Rule
14.11(i)(4)(C)(ii)(e), the Non-Agency ABS and MBS held by the Fund will
not account, in the aggregate, for more than 20% of the weight of the
total portfolio.
    As noted above, the remainder of the Fund's portfolio, including
fixed income securities, will meet all other applicable generic listing
standards under Rule 14.11(i)(4)(C). Allowing the Fund full flexibility
to implement its fixed income strategy and further diversify its
holdings to provide exposure to a broader array of fixed income
securities would allow the Fund to better achieve its investment
objective and, as such, benefit investors in the Fund.
    The Exchange believes that its surveillance procedures are adequate
to properly monitor the trading of the Shares on the Exchange during
all trading sessions and to deter and detect violations of Exchange
rules and the applicable federal securities laws. Rule 14.11(i)(7)
provides that, if the investment adviser or sub-adviser to the
investment company issuing Managed Fund Shares is affiliated with a
broker-dealer, such investment adviser or sub-adviser shall erect a
``fire wall'' between the investment adviser or sub-adviser and the
broker-dealer with respect to access to information concerning the
composition and/or changes to such investment company portfolio. The
Adviser and Sub-Adviser are not a registered broker-dealer, but the
Adviser and Sub-Adviser are affiliated with a broker-dealer and have
implemented and will maintain ``fire walls'' with respect to such
broker-dealer regarding access to information concerning the
composition and/or changes to the Fund's portfolio. In addition,
Adviser and Sub-Adviser personnel who make decisions regarding the
Fund's portfolio are subject to procedures designed to prevent the use
and dissemination of material nonpublic information regarding the
Fund's portfolio. Additionally, the Exchange or FINRA, on behalf of the
Exchange, are able to access, as needed, trade information for certain
fixed income instruments reported to TRACE. The Exchange may obtain
information regarding trading in the Shares via the ISG from other
exchanges who are a member of ISG or affiliated with a member of ISG or
with which the Exchange has entered into a comprehensive surveillance
sharing agreement. The Exchange further notes that, except as sort
[sic] forth above, the Fund will meet and be subject to all
requirements of the generic listing rules and applicable continued
listing requirements for Managed Fund Shares under Rule 14.11(i),
including those requirements regarding the dissemination of key
information such as the Disclosed Portfolio, Net Asset Value, and the
Intraday Indicative Value, suspension of trading or removal, trading
halts, surveillance, minimum price variation for quoting and order
entry, the information circular, and firewalls as set forth in Exchange
rules applicable to Managed Fund Shares.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information is publicly available regarding the Fund and the Shares,
thereby promoting market transparency. Moreover, the Intraday
Indicative Value will be disseminated by one or more major market data
vendors at least every 15 seconds during Regular Trading Hours. On each
business day, before commencement of trading in Shares during Regular
Trading Hours, the Fund will disclose on its website the Disclosed
Portfolio that will form the basis for the Fund's calculation of NAV at
the end of the business day. The Fund's website will include additional
quantitative information updated on a daily basis, including, for the
Fund: (1) The prior business day's NAV and the market closing price or
mid-point of the Bid/Ask Price,\29\ and a calculation of the premium or
discount of the market closing price or Bid/Ask Price against the NAV;
and (2) data in chart format displaying the frequency distribution of
discounts and premiums of the daily market closing price or Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. Additionally, information regarding market
price and trading of the Shares will be continually available on a
real-time basis throughout the day on brokers' computer screens and
other electronic services, and quotation and last sale information for
the Shares will be available on the facilities of the Consolidated Tape
Association. The website for the Fund will include a form of the
prospectus for the Fund and additional data relating to NAV and other
applicable quantitative information. Trading in Shares of the Fund will
be halted under the

conditions specified in Rule 11.18. Trading may also be halted because
of market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable. Finally, trading in the Shares
will be subject to Rule 14.11(i)(4)(B)(iv), which sets forth
circumstances under which Shares may be halted. In addition, as noted
above, investors will have ready access to information regarding the
Fund's holdings, the Intraday Indicative Value, the Disclosed
Portfolio, and quotation and last sale information for the Shares.
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    \29\ The Bid/Ask Price of the Fund will be determined using the
highest bid and the lowest offer on the Exchange as of the time of
calculation of the Fund's NAV. The records relating to Bid/Ask
Prices will be retained by the Fund or its service providers.
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    Intraday price quotations on fixed income securities and OTC
derivative instruments are available from major broker-dealer firms and
from third-parties, which may provide prices free with a time delay or
in real-time for a paid fee. Additionally, the intraday, closing and
settlement prices of futures contracts held by the Fund will be readily
available from the exchanges on which such products are listed,
automated quotation systems, published or other public sources, or
online information services such as Bloomberg or Reuters. Price
information for Cash Equivalents will be available from major market
data vendors. The Exchange prohibits the distribution of material non-
public information by its employees.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an actively-managed exchange traded product that will enhance
competition among market participants, to the benefit of investors and
the marketplace. As noted above, the Exchange has in place surveillance
procedures relating to trading in the Shares and may obtain information
via ISG, from other exchanges that are members of ISG, or with which
the Exchange has entered into a comprehensive surveillance sharing
agreement. In addition, the Exchange, or FINRA, on behalf of the
Exchange, is able to access, as needed, trade information for certain
fixed income instruments reported to TRACE. As noted above, investors
will also have ready access to information regarding the Fund's
holdings, the Intraday Indicative Value, the Disclosed Portfolio, and
quotation and last sale information for the Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

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 that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of an
additional actively-managed exchange-traded product that will enhance
competition among market participants, to the benefit of investors and
the marketplace.

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \30\ and Rule 19b-
4(f)(6) thereunder.\31\
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78s(b)(3)(A).
    \31\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \32\ normally
does not become operative for 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\33\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay to allow the Fund to
list and trade on the Exchange as soon as practicable. The Exchange
stated that the proposal would allow the Fund to hold Non-Agency ABS
and MBS in a manner that is generally consistent with other series of
Managed Fund Shares that the Commission has approved for listing and
trading.\34\ The Commission agrees that the proposal raises no novel or
substantive issues. Therefore, the Commission believes that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest and hereby waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\35\
---------------------------------------------------------------------------

    \32\ 17 CFR 240.19b-4(f)(6).
    \33\ 17 CFR 240.19b-4(f)(6)(iii).
    \34\ See supra note 8. Nasdaq Rule 5735(b)(1)(B)(iv) is
substantially the same as Exchange Rule 14.11(i)(4)(C)(ii)(d).
    \35\ For purposes only of waiving the operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2020-008 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-CboeBZX-2020-008. 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-CboeBZX-2020-008 and should
be submitted on or before February 27, 2020.
---------------------------------------------------------------------------

    \36\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-02278 Filed 2-5-20; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)]
[Rules and Regulations]
[Pages 8520-8524]
[FR Doc No: 2015-03329]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 742

[Docket No. 140812661-4661-01]
RIN 0694-AG24

Revisions to License Exception Availability for Consumer
Communications Devices and Licensing Policy for Civil
Telecommunications-Related Items Such as Infrastructure Regarding Sudan

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule amends the Export Administration Regulations to
revise the general licensing policy of denial to one of case-by-case
licensing for exports and reexports to Sudan of telecommunications
equipment and associated computers, software, and technology for civil
end use, including items useful for the development of civil
telecommunications network

infrastructure. It also revises License Exception Consumer
Communications Devices (CCD), which previously applied only to consumer
communications devices to Cuba, to authorize exports and reexports of
such devices to Sudan. Additionally, it makes minor technical changes
to the list of items that are eligible for both Sudan and Cuba under
the license exception. This rule also makes changes to License
Exception Temporary Imports, Exports, Reexports and Transfers (in-
country) (TMP) in light of the changes to License Exception CCD.
Finally, it removes a license requirement for reexports to Sudan of
certain telecommunications software. BIS is making these changes
consistent with the U.S. Government's commitment to the advancement of
the free flow of information to, from, and within Sudan, including
during a national dialogue.

DATES: The rule is effective February 18, 2015.

FOR FURTHER INFORMATION CONTACT: Theodore Curtin, telephone (202) 482-
4252, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    Section 742.10 of the Export Administration Regulations (EAR)
requires a license for antiterrorism reasons for the export and
reexport of most items on the Commerce Control List, Supp. 1 to part
774, to Sudan in keeping with Sudan's designation as a state sponsor of
terrorism. These items include certain consumer communication devices
and related software and telecommunications infrastructure items that
do not require a license for export or reexport to most destinations.
Prior to publication of this rule, the EAR imposed a general policy of
denial on applications for export or reexport of many of these items to
Sudan. This rule modifies that policy to one of case-by-case review
with respect to telecommunications equipment and associated computers,
software and technology for civil end use, including items useful for
the development of civil telecommunications network infrastructure.
This rule also makes certain telecommunications software that was
subject to a reexport license requirement prior to this rule's
publication eligible for reexport to Sudan without a license and
authorizes use of a license exception to export or reexport consumer
communications devices to Sudan. This rule is being published
simultaneously with a Department of the Treasury, Office of Foreign
Assets Control general license in the Sudanese Sanctions Regulations
(31 CFR part 538) for export or reexport of certain services, hardware,
and software incident to personal communications to Sudan. BIS is
publishing this rule after consultations with the Department of State
to facilitate communication and the free flow of information among the
Sudanese people, including by providing them with access to
communications tools.

Specific Changes Made by This Rule

Expansion of License Exception Consumer Communication Devices (CCD) and
Implementation of Conforming Change to License Temporary Imports,
Exports, Reexports and Transfers (In-Country) (TMP)

    This rule revises Sec.  740.19 of the EAR (License Exception CCD)
to add Sudan as an eligible destination. This license exception
authorizes export and reexport of consumer communications devices
(commodities such as computers, communications equipment and related
items including personal computers, mobile phones, televisions, radios
and digital cameras) that are widely available for retail purchase and
that are commonly used to exchange information and facilitate
interpersonal communications, as well as certain telecommunications-
and information security-related software. Prior to publication of this
rule, Cuba was the only eligible destination under License Exception
CCD. This rule also makes some additions and other changes to the
license exception related to the addition of Sudan. The changes related
to Sudan are:
     Adding certain Global Positioning System receivers or
similar satellite receivers as eligible items for export and reexport
to Sudan under this license exception; and
     Limiting availability of the license exception to certain
consumer software that is distributed free of charge in situations
where the government of Sudan is the end user.
    Many of the items eligible for export and reexport under this
license exception are designated EAR99. Consequently, prior to the
publication of this rule, they did not require a license from BIS for
export or reexport to Sudan under most circumstances (i.e.,
circumstances that do not trigger end-use or end-user concerns under
part 744 of the EAR). Similarly, commodities classified under Export
Control Classification Number (ECCN) 5A992 generally did not require a
license from BIS for reexport to Sudan in the absence of part 744-
related end-use and end-user concerns. The publication of this rule
does not change these two general practices. Adding Sudan to License
Exception CCD as an eligible destination does not impose a license
requirement for such items. However, the license exception would be
available for the export or reexport to Sudan of items listed on the
CCL that would otherwise require a license.
    BIS is making these changes to License Exception CCD to facilitate
the supplying of communications capabilities to people in Sudan in
support of the U.S. Government's policy to promote the Sudanese
people's communication among themselves and with the outside world,
including during a national dialogue where the Sudanese people may
participate in broad discussions to address their longstanding concerns
regarding governance. This rule is intended to facilitate inclusive and
broad participation in such a dialogue by making the necessary
communications tools available to the Sudanese people. These changes
are being made in coordination with a general license being published
simultaneously by the Department of the Treasury, Office of Foreign
Assets Control and added to the Sudanese Sanctions Regulations (31 CFR
part 538) that generally authorizes the export and reexport to Sudan of
certain services, hardware, and software incident to personal
communications.

Changes to License Exception CCD Affecting Items Eligible for Cuba and
Sudan

    This rule adds a note that defines the term ``consumer'' for
purposes of paragraph (b), which applies the term ``consumer'' when
describing the commodities and software in paragraphs (b)(1)--
computers, (b)(2)--disk drives and solid state storage equipment,
(b)(12)--information security equipment, software and peripherals and
(b)(17)--software. This addition is not a substantive change to the
scope of License Exception CCD. This addition emphasizes the
consistency of this rule with the related general license being
published simultaneously by the Department of the Treasury, Office of
Foreign Assets Control, which includes this definition of ``consumer''
in connection with commodities and software.

Conforming Change to License Exception TMP

    This rule also removes the provision of License Exception TMP
(Sec.  740.9(a)(2) of the EAR) related to tools of trade being
temporarily taken to Sudan for a specific class of persons for certain
specified purposes (generally,

temporary exports and reexports by non-governmental organizations and
related individuals, including employees and contractors, for
development or humanitarian purposes) because it is no longer
necessary. With the changes made by this rule, License Exception CCD
now authorizes all of the exports and reexports that were authorized by
that provision of License Exception TMP without the limitations imposed
by License Exception TMP on duration, class of persons who may use the
license exception, and end use.

Certain Telecommunications Software Made Eligible for Reexport to Sudan
Without a License

    This rule makes software controlled under ECCN 5D992.b or .c
eligible for reexport to Sudan without a license from BIS. Software
controlled under ECCN 5D992.b has the characteristics of, or performs
or simulates the functions of, telecommunications equipment and
information security equipment controlled under ECCN 5A992.a or .b.
Commodities controlled under ECCN 5A992 were eligible for reexport to
Sudan without a license from BIS prior to the publication of this rule.
This change makes software that shares the characteristics of and/or
performs or simulates the same functions as the hardware (commodities)
eligible for reexport to Sudan on the same terms as the commodities
themselves. Software controlled under ECCN 5D992.c includes mass market
software such as mobile apps that may promote personal communications
by the Sudanese people.

Adoption of Case-by-Case License Application Review Policy

    This rule revises the statement of antiterrorism licensing policy
for Sudan set forth in Sec.  742.10 of the EAR to provide that license
applications for export or reexport to Sudan of ``telecommunications
equipment and associated computers, software and technology for civil
end use, including items useful for the development of civil
telecommunications network infrastructure'' will be considered on a
case-by-case basis rather than being subject to a general policy of
denial. This change is being made to allow BIS and the other agencies
that review such applications to further U.S. government policy of
advancing the free flow of information to, from and within Sudan and to
facilitate the Sudanese people's communications among themselves and
with the outside world. BIS recognizes the importance of adequate civil
telecommunications network infrastructural capability to enable the
Sudanese people to engage in secure, effective, and reliable personal
communications.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). This rule
does not impose any regulatory burden on the public and is consistent
with the goals of Executive Order 13563. This rule has been determined
to be significant for purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.) (PRA), unless that collection of information displays a currently
valid Office of Management and Budget (OMB) control number. This rule
involves a collection of information approved under OMB control number
0694-0088--Simplified Network Application Processing+ System (SNAP+)
and the Multipurpose Export License Application which carries an annual
estimated burden of 31,833 hours. BIS believes that this rule will have
no material impact on that burden. To the extent that it has any impact
at all, the impact would be to reduce the burden because this rule
makes some transactions that would otherwise require a license eligible
for a license exception.
    3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
    4. BIS finds good cause under 5 U.S.C. 553(b)(B) to waive prior
notice of proposed rulemaking and the opportunity for public comment
because it is impracticable and contrary to the public interest. BIS is
publishing this rule as part of a State Department-led initiative to
promote the free flow of information and to facilitate communications
by the Sudanese people. This rule supports that initiative by reducing
the procedural requirements needed to send personal communications
devices, such as mobile phones, that are the instruments of modern
communications to Sudan. Ensuring that the Sudanese people have tools
to communicate freely is particularly vital. In a joint statement
issued on September 18, 2014, the United States, the United Kingdom,
and Norway reiterated their ``support for a mediation architecture that
facilitates both resolution of conflict and a comprehensive process of
national dialogue.'' The time needed to conduct a notice and public
comment would thwart the purpose of this rule, which is to enhance
communications, including during a national dialogue period. Consistent
with the initiative, this rule amends the EAR to allow case-by-case
review of license applications to send telecommunications-related
items, including items useful for the development of civil
telecommunications infrastructure, to Sudan. In coordination with BIS,
the Department of the Treasury, Office of Foreign Assets Control (OFAC)
is amending the Sudanese Sanctions Regulations (31 CFR part 538) to
authorize similar transactions involving the exportation of certain
services, software, and hardware incident to personal communications.
The time that would be required for notice and opportunity for public
comment required by 5 U.S.C. part 553 for BIS's rule would undermine
the opportunity for enhanced communications and information flow,
thereby causing the rule to fail to meet the objective of promoting the
Sudanese people's ability to communicate in a free, robust, and secure
manner. Delay in publication of this rule would be contrary to the
public interest because it would undermine the ability of the Sudanese
people to participate fully in a national dialogue.
    BIS also finds good cause under 5 U.S.C. 553(d)(3) to waive the 30-
day delay in effectiveness. This rule amends the EAR to allow case-by-
case review of license applications to send telecommunications-related
items, including items useful for the development of civil
telecommunications infrastructure, to Sudan. The 30-day delay in
effectiveness otherwise required under 5 U.S.C. 553 would undermine the
opportunity for enhanced communications and information flow, thereby
causing the rule to fail in its objective, which is to promote the
Sudanese people's ability to communicate in a free, robust, and secure
manner including during a national dialogue. This final rule is being
implemented with immediate effectiveness to be concurrent with OFAC's
publication of its regulatory changes, which are also being made
effective upon publication. Prompt, simultaneous publication is
important in light of the fact that certain

transactions with Sudan require authorization under both the EAR and
the Sudanese Sanctions Regulations. For example, an export of an item
might require an export license from BIS and a separate license from
OFAC. Payment for the export might also require authorization from
OFAC. Simultaneous publication would permit effective implementation of
the changes to the two agencies' regulations. In particular, it would
ensure that an export transaction authorized under OFAC's general
license pertaining to certain software, hardware, and services incident
to personal communications would be eligible for a license exception
under the EAR rather than requiring a license from BIS, thereby
effectuating the U.S. Government's policy to advance personal
communications in Sudan.

List of Subjects

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.

15 CFR Part 742

    Exports, Terrorism.

    For the reasons set forth in the preamble, the Export
Administration Regulations (15 CFR parts 730-774) are amended as
follows:

PART 740--[AMENDED]

0
1. The authority citation for 15 CFR part 740 continues to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp.,
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 7, 2014, 79 FR 46959 (Aug. 11, 2014).

Sec.  740.9  [Amended]

0
2. Section 740.9 is amended by:
0
a. Removing the semicolon and the phrase ``for Sudan, see paragraph
(a)(2) of this section'' from the first sentence of paragraph (a)(1);
and
0
b. Removing and reserving paragraph (a)(2).

0
3. Section 740.19 is amended by:
0
a. Revising paragraph (a);
0
b. Revising paragraph (b) introductory text;
0
c. Removing the word ``and'' from the end of paragraph (b)(16);
0
d. Removing the period from the end of paragraph (b)(17) and adding in
its place a semicolon followed by the word ``and'';
0
e. Adding paragraph (b)(18);
0
f. Adding a note to paragraph (b); and
0
g. Revising paragraph (c).
    The revisions and additions read as follows:

Sec.  740.19  Consumer Communications Devices (CCD).

    (a) Authorizations. This section authorizes the export or reexport
of commodities and software, either sold or donated, to Cuba or Sudan
subject to the requirements stated herein. This section does not
authorize U.S.-owned or -controlled entities in third countries to
engage in reexports of foreign produced commodities to Cuba for which
no license would be issued by the Department of the Treasury pursuant
to 31 CFR 515.559.
    (b) Eligible commodities and software. Commodities and software in
paragraphs (b)(1) through (17) of this section are eligible for export
or reexport under this section to Cuba or Sudan. Commodities in
paragraph (b)(18) of this section are eligible for export or reexport
under this section to Sudan only.
    * * *
    (18) (Sudan only) Global Positioning System receivers or similar
satellite receivers controlled under ECCN 7A994.

    Note to paragraph (b): In this paragraph, the term ``consumer''
refers to items that are:
    1. Generally available to the public by being sold, without
restriction, from stock at retail selling points by means of any of
the following:
    a. Over-the-counter transactions;
    b. Mail order transactions;
    c. Electronic transactions; or
    d. Telephone call transactions; and
    2. Designed for installation by the user without further
substantial support by the supplier.

    (c) Eligible and ineligible end-users--(1) Organizations. (i) This
license exception may be used to export or reexport eligible
commodities and software to and for the use of independent non-
governmental organizations in Cuba or Sudan.
    (ii) The Cuban Government or the Cuban Communist Party and
organizations they administer or control are not eligible end-users.
    (iii) The Government of Sudan is not an eligible end-user for any
item exported or reexported pursuant to this license exception except
for consumer software that is authorized under paragraph (b)(12) or
(b)(17) of this section and that is distributed free of charge.
    (2) Individuals. This License Exception may be used to export
eligible commodities and software to and for the use of individuals
other than the following:
    (i) Ineligible Cuban Government Officials. Ministers and vice-
ministers; members of the Council of State; members of the Council of
Ministers; members and employees of the National Assembly of People's
Power; members of any provincial assembly; local sector chiefs of the
Committees for the Defense of the Revolution; Director Generals and
sub-Director Generals and higher of all Cuban ministries and state
agencies; employees of the Ministry of the Interior (MININT); employees
of the Ministry of Defense (MINFAR); secretaries and first secretaries
of the Confederation of Labor of Cuba (CTC) and its component unions;
chief editors, editors and deputy editors of Cuban state-run media
organizations and programs, including newspapers, television, and
radio; or members and employees of the Supreme Court (Tribuno Supremo
Nacional).
    (ii) Ineligible Cuban Communist Party Officials. Members of the
Politburo; the Central Committee; Department Heads of the Central
Committee; employees of the Central Committee; and the secretaries and
first secretaries of provincial Party central committees.

PART 742--[AMENDED]

0
4. The authority citation for 15 CFR part 742 continues to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of
November 7, 2014, 79 FR 67035 (November 12, 2014).

0
5. Section 742.10 is amended by:
0
a. Revising the first sentence of paragraph (a)(2);
0
b. Revising paragraph (b)(3);
0
c. Redesignating the note to paragraph (b) as the note to paragraph
(b)(3); and
0
d. Revising the newly redesignated note to paragraph (b)(3), to read as
follows:

Sec.  742.10  Anti-terrorism: Sudan.

    (a) * * *
    (2) If AT column 1 or AT column 2 of the Commerce Country Chart
(Supplement No. 1 to part 738 of the EAR) is indicated in the
appropriate ECCN, a license is required for reexport to Sudan for anti-
terrorism purposes, except for ECCNs 2A994, 3A992.a, 5A991.g, 5A992,
5D992.b or .c, 6A991, 6A998, 7A994, 8A992.d, .e, .f, and .g,

9A990.a and .b, and 9A991.d and .e. * * *
* * * * *
    (b) * * *
    (3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2)
of this section, applications for Sudan will be considered on a case-
by-case basis in the following four situations.
    (i) The transaction involves the reexport to Sudan of items where
Sudan was not the intended ultimate destination at the time of original
export from the United States, provided that the exports from the U.S.
occurred prior to the applicable contract sanctity date.
    (ii) The U.S. content of foreign-produced commodities is 20% or
less by value.
    (iii) The commodities are medical items.
    (iv) The items are telecommunications equipment and associated
computers, software and technology for civil end use, including items
useful for the development of civil telecommunications network
infrastructure.

    Note to paragraph (b)(3) of this section:  Applicants who wish
any of the factors described in paragraph (b)(3) of this section to
be considered in reviewing their license applications must submit
adequate documentation demonstrating the appropriateness of the
factor: i.e., the date of export from the United States, the value
of the U.S. content, the specifications and medical use of the
equipment, or the specific civil end use of the item and any
function the item will have in the development of civil
telecommunications network infrastructure, as relevant to the factor
for which consideration is sought.

* * * * *

    Dated: February 12, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-03329 Filed 2-17-15; 8:45 am]
BILLING CODE 3510-33-P


[Federal Register Volume 78, Number 106 (Monday, June 3, 2013)]
[Rules and Regulations]
[Pages 32990-32991]
[FR Doc No: 2013-12998]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Parts 100 and 165

[Docket No. USCG-2011-0551]

Special Local Regulation and Safety Zone; America's Cup Sailing
Events, San Francisco, CA

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule; notice of calendar availability.

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SUMMARY: The Coast Guard announces the availability of the 2013 program
calendar for the on-water activities associated with the ``Louis
Vuitton Cup, Red Bull Youth America's Cup and the 34th America's Cup''
regatta scheduled from July 4th to September 23rd, 2013 on the waters
of San Francisco Bay adjacent to the City of San Francisco waterfront
in the vicinity of the Golden Gate Bridge and Alcatraz Island.

DATES: Effective June 3, 2013.

ADDRESSES: Documents indicated in this preamble as being available in
the docket are part of docket USCG-2011-0551 and are available online
by going to http://www.regulations.gov, inserting USCG-2011-0551 in the
``Keyword'' box, and then clicking ``Search.'' They are also available
for inspection or copying at the Docket Management Facility (M-30),
U.S. Department of Transportation, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this notice,
call or email Commander Aaron Lubrano, Coast Guard Sector San
Francisco, U.S. Coast Guard; telephone<PHONE_NUMBER>, email
<EMAIL_ADDRESS>If you have questions on viewing or
submitting material to the docket, call Barbara Hairston, Program
Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background and Purpose

    The Coast Guard, on July 17, 2012, published a special local
regulation and a safety zone for the sailing regattas being conducted
on the waters of San Francisco Bay associated with the 34th America's
Cup sailing events taking place adjacent to the City of San Francisco
waterfront in the vicinity of the Golden Gate Bridge and Alcatraz
Island. (77 FR 41902) The special local regulation and safety zone
regulate the on-water activities associated with the ``Louis Vuitton
Cup, Red Bull Youth America's Cup and the 34th America's Cup'' regatta
scheduled for July 4th to September 23rd, 2013, which will temporarily
restrict vessel traffic in a portion of the San Francisco Bay, prohibit
vessels not participating in the America's Cup sailing events from
entering the designated race area, and create a temporary safety zone
around racing vessels.
    This document announces the availability of the 2013 program
calendar referenced in the rulemaking published in association with the
``Louis Vuitton Cup, Red Bull Youth America's Cup and the 34th
America's Cup'' regattas. This program lists the scheduled race dates
that the rule will be enforced for the event programming.
    This document is issued under the authority of 5 U.S.C. 552(a), 33
U.S.C. 1233, and 33 CFR 1.05-1.

    Dated: May 7, 2013.
Gregory G. Stump,
Captain, U.S. Coast Guard, Captain of the Port San Francisco.
[FR Doc. 2013-12998 Filed 5-31-13; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register: January 3, 2007 (Volume 72, Number 1)] [CORRECTIONS]                [Page 198] [DOCID:fr03ja07-94]

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 50 and 380

[Docket No. RM06-12-000; Order No. 689]

  Regulations for Filing Applications for Permits to Site  Interstate Electric Transmission Facilities

Correction

    In rule document E6-20001 beginning on page 69440 in the issue of  Friday, December 1, 2006, make the following correction:     On page 69440, in the second column, under the DATES heading, in  the second line, ``February 2, 2007'' should read ``January 30, 2007''.

[FR Doc. Z6-20001 Filed 12-29-06; 8:45 am]

BILLING CODE 1505-01-D


                 Summary of Region 7 Public Listening Session                            on 111(d) for Power Plants                                                                 November 4, 2013  -  Lenexa, KS

On November 4, 2013, EPA Region 7 held a public listening session to obtain public input on how EPA should draft carbon pollution standards for existing power plants.  A total of 391 individuals registered for the event.  The final attendance was 324 which consisted of 225 pre-registered attendees and 99 "walk-ins".  We had a total of 139 speakers.   Attendees included business and industry representatives (11), environmental organizations (16), elected officials (9), government officials (4), faith-based organizations (2), citizen groups (4) and general public (93).  The individuals identified as "general public" may have had some affiliation but if so, did not identify it in their registration documentation.  Attendees came from all 4 of our States (KS, NE, MO, IA) as well as Illinois, Arkansas, North Dakota, South Dakota and Colorado.

A high-level summary of the meeting is provided below.

Overview

Regional Administrator Karl Brooks offered opening remarks and Becky Weber described how Clean Air Act section 111(d) has worked.  Region 7 used three experienced moderators to manage concurrent listening sessions over the 4 hour meeting.

Impacts of climate change:

Many speakers were concerned about climate changes and its impacts on health, businesses (including small businesses), jobs, livelihoods, vulnerable populations, natural resources, assets, and communities, and more broadly, the environment and the economy.

Overview of Comments on 111(d):

Many speakers supported action by EPA on existing power plants and encouraged the Agency to implement strong standards in a timely manner, with prompt review of state plans.  Several speakers supported the phase-out of coal, or more stringent regulations for coal, and felt the standards would prompt the transition to cleaner electric generation and renewables.

Speakers offered solutions for addressing carbon pollution from power plants and discussed energy efficiency, solar and wind power, and renewable portfolio standards as possible considerations beyond onsite controls at power plants. They also felt the standards could spur technological innovation and create jobs.

Other speakers cautioned EPA not to penalize states who were early implementers of carbon pollution programs for existing power plants.  This is discussed further in the section on "State Regulations".

Economic Impacts:

While many speakers were supportive of EPA standards for carbon emissions, some speakers cautioned EPA on several fronts.  Those speakers urged EPA to ensure that regulations are fair and not rushed, and account for the human element of those who may be negatively affected by EPA regulations (e.g., rural communities).

Many individuals further noted that there were energy efficiency and emissions reduction efforts that had already occurred and strongly urged the Agency to write a rule which "meshes" with these improvements and to the extent possible, provides credit for them.  Some individuals further clarified that aggressive regulations could prematurely retire units many of which had been recently improved through significant investment.  Such retirements could impact reliability and increase rates and should be avoided.

Many individuals were concerned about job loss impacts that they believe could result from the implementation of greenhouse gas regulation.

Some speakers warned that EPA regulations should not harm the affordability and reliability of energy, also articulating concerns about over-reliance on a single fuel such as natural gas.

A number of individuals commented that the Agency has over-regulated businesses, especially small businesses and they are concerned about the potential negative impact of this rule on the small business community.

A few individuals noted that climate change impacts on disadvantaged communities can be much greater than for other communities and urged the Agency to take action to protect these communities and to ensure that these actions translate into verifiable results.

A number of individuals indicated a concern regarding the impact of such a rule on small rural power generators, including COOPS, which rely heavily on coal for power production.  These entities provide power to small, rural communities and have few options available to them to comply with extensive greenhouse gas requirements.

Many asked that the Agency provide extensive flexibility to states and units and exercise caution with mandates.  Some individuals further commented that many of our rural communities include low income families which can least afford increased electric rates associated with such rules.

Quite a few individuals indicated that they were concerned about job losses associated with the MATS rule and were also concerned that further job losses in the same sector would result from greenhouse gas rules.

Energy Efficiency (EE) and Renewable Energy (RE):

A number of speakers urged EPA to consider EE and RE as a part of the solution for reducing carbon pollution from power plants.  These speakers encouraged EPA to design the regulations to be flexible enough to include EE and RE as part of the solution.

Regarding RE, speakers asked EPA to provide renewable energy an even playing field, to invest in renewable and clean alternatives, to transition to these safer, cleaner sources of energy.

A number of individuals encouraged the Agency to focus its rule on energy efficiency at the consumer level.

Setting the Standard:

A number of speakers encouraged EPA to consider allowing flexibility for compliance not only at a state level, but at a regional level.  Certain speakers supported a mass-based emissions approach as opposed to a rate-based approach, while others supported the rate-based approach.

Several speakers encouraged EPA to consider technology potential and innovation as EPA sets the new standards.  These speakers also advocated maximum flexibility for states to adopt new and advanced energy technologies, allowing room for creativity and potentially spurring innovation through EPA's regulations.

Several speakers expressed concern over an over-reliance on or over-incentivizing a single source of fuel and articulated the need for EPA to encourage a diversity of fuels in setting its standards

Many individuals commented that they believe it would not be practical or appropriated to require carbon capture and sequestration for existing power production facilities.

A few individuals indicated that the Agency should work with industry to ensure that pollution control technologies are viable before they are mandated.

A number of individuals encouraged the Agency to support a system-wide, collaborative approach in addressing greenhouse gas emission reductions.

State Regulations:

Speakers urged EPA to provide states ample time and flexibility for designing their state regulations.  Furthermore, they recommended that EPA regulations provide sufficient flexibility to accommodate existing policy solutions that are already in place, recognizing that each state will have different methods that are optimal for that state.  In particular, states advised EPA to account for existing state work, taking care to ensure that early implementers are credited for their proactive steps.

Ensuring Program Effectiveness:

A few individuals commented that EPA should take more time to develop the proposal and provide the states and affected facilities with more time to develop plans and comply.

Several speakers cautioned that standards cannot be so broad that it allows for actions that do not achieve real emissions reductions; and that effectiveness should not be compromised.  For those states that choose not to implement their own plans, one speaker urged EPA to establish a strong federal implementation standard.

Federal Leadership:

Several speakers called on EPA and the federal government to provide effective, collaborative leadership, particularly where collective actions are needed such as climate change and carbon pollution.  They recommended federal coordination across agencies and encouraged EPA to work with businesses.

Some individuals requested that EPA hold additional meetings on this rule in more remote areas of the Region.

A number of individuals asked for the Agency to continue to provide education and open discussion forums around climate change and climate change regulations.


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[Federal Register Volume 77, Number 108 (Tuesday, June 5, 2012)]
[Notices]
[Pages 33207-33208]
[FR Doc No: 2012-13548]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

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

    Docket Numbers: ER08-1126-004; ER08-1128-004 ER08-1129-004; ER08-
1130-004; ER08-1131-004; ER08-1134-004; ER08-1135-004; ER08-1136-004;
ER08-1137-004; ER08-1139-004.
    Applicants: Georgia-Pacific Brewton LLC, Brunswick Cellulose, Inc.,
Georgia-Pacific Cedar Springs LLC, Georgia-Pacific Consumer Operations
LLC, Georgia-Pacific Consumer Products LP, Georgia-Pacific LLC,
Georgia-Pacific Monticello LLC, Leaf River Cellulose, LLC.
    Description: Supplemental Triennial Market Power Filing on behalf
of the Georgia-Pacific Entities in the Southeast.
    Filed Date: 5/23/12.
    Accession Number: 20120523-5180.
    Comments Due: 5 p.m. ET 6/13/12.

    Docket Numbers: ER11-4452-001.
    Applicants: Buy Energy Direct LLC.
    Description: Buy Energy Direct LLC submits tariff filing per 35:
COMPLIANCE BASE LINE TARIFF to be effective 9/7/2011.
    Filed Date: 5/23/12.
    Accession Number: 20120523-5125.
    Comments Due: 5 p.m. ET 6/13/12.

    Docket Numbers: ER12-430-002.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc. submits tariff filing per
35.17(b): Amendatory Filing to Attachment AE Review and Assessment of
Resource Plans to be effective 5/24/2012.
    Filed Date: 5/23/12.
    Accession Number: 20120523-5159.
    Comments Due: 5 p.m. ET 6/13/12.

    Docket Numbers: ER12-1833-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: First Revised Service Agreement No. 2922; Queue No.
W2-090 to be effective 5/1/2011.
    Filed Date: 5/23/12.
    Accession Number: 20120523-5073.
    Comments Due: 5 p.m. ET 6/13/12.

    Docket Numbers: ER12-1833-001.
    Applicants: PJM Interconnection, L.L.C.
    Description: PJM Interconnection, L.L.C. submits tariff filing per
35.17(b): Errata to correct Metadata to First Revised SA No. 2922 in
ER12-1833 to be effective 5/1/2012.
    Filed Date: 5/23/12.
    Accession Number: 20120523-5160.
    Comments Due: 5 p.m. ET 6/13/12.

    Docket Numbers: ER12-1834-000.
    Applicants: Vermont Electric Power Company, Inc.
    Description: Vermont Electric Power Company, Inc. submits tariff
filing per 35.1: Vermont True Up Agreement to be effective 7/23/2012.
    Filed Date: 5/23/12.
    Accession Number: 20120523-5154.
    Comments Due: 5 p.m. ET 6/13/12.

    Docket Numbers: ER12-1835-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: Midwest Independent Transmission System Operator, Inc.
submits tariff filing per 35.13(a)(2)(iii: G604 Amended GIA to be
effective 5/24/2012.
    Filed Date: 5/23/12.
    Accession Number: 20120523-5155.
    Comments Due: 5 p.m. ET 6/13/12.

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

    Dated: May 24, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-13548 Filed 6-4-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: February 24, 2010 (Volume 75, Number 36)]
[Notices]
[Page 8333-8335]
[DOCID:fr24fe10-72]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2003-0152; FRL-9117-2]

Agency Information Collection Activities: Proposed Collection;
Comment Request; Compliance Assurance Monitoring Program; EPA ICR No.
1663.07, OMB Control No. 2060-0376

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: In compliance with the Paperwork Reduction Act (PRA) (44
U.S.C. 3501 et seq.), this document announces that EPA is planning to
submit a request to renew an existing approved Information Collection
Request (ICR) to the Office of Management and Budget (OMB). This ICR is
scheduled to expire on July 31, 2010. Before submitting the ICR to OMB
for review and approval, EPA is soliciting comments on specific aspects
of the proposed information collection as described below.

DATES: Comments must be submitted on or before April 26, 2010.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2003-0152, by one of the following methods:
     www.regulations.gov: Follow the on-line instructions for
submitting comments.
     E-mail<EMAIL_ADDRESS>     Fax:<PHONE_NUMBER>
     Mail: ICR Renewal (2010)--Compliance Assurance Monitoring
Program, Environmental Protection Agency, EPA Docket Center, Air and
Radiation Docket, Mailcode: 22821T, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460.
     Hand Delivery: Air and Radiation Docket and Information
Center, U.S. EPA, Room 3334, EPA West Building, 1301 Constitution
Avenue, NW., Washington, DC 20004. Such deliveries are only accepted
during the Docket's normal hours of operation, and special arrangements
should be made for deliveries of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2003-0152. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
www.regulations.gov, including any personal information provided,
unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit information that you consider to
be CBI or otherwise protected through www.regulations.gov or e-mail.
The www.regulations.gov Web site is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through www.regulations.gov
your e-mail address will be automatically captured and included as part
of the comment that is placed in the public docket and made available
on the Internet. If you submit an electronic comment, EPA recommends
that you include your name and other contact information in the body of
your comment and with any disk or CD-ROM you submit. If EPA cannot read
your comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses. For additional
information about EPA's public docket, visit the EPA Docket Center
homepage at http://www.epa.gov/epahome/dockets.htm.

FOR FURTHER INFORMATION CONTACT: Peter Westlin, Office of Air Quality
Planning and Standards, Sector Policies and Programs Division (D243-
05), Environmental Protection Agency, Research Triangle Park, NC 27711;
telephone number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>; e-mail
address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

How Can I Access the Docket and/or Submit Comments?

    EPA has established a public docket for this ICR under Docket ID
No. EPA-HQ-OAR-2003-0152, which is available for online viewing at
www.regulations.gov, or in person viewing at the Air and Radiation
Docket in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301
Constitution Ave., NW., Washington, DC. The EPA/DC Public Reading Room
is open from 8 a.m. to 4:30 p.m., Monday through Friday, excluding
legal holidays. The telephone number for the Reading Room is 202-566-
1744, and the telephone number for the Air and Radiation Docket is 202-
566-1742.
    Use www.regulations.gov to obtain a copy of the draft collection of
information, submit or view public comments, access the index listing
of the contents of the docket, and to access those documents in the
public docket that are available electronically. Once in the system,
select ``search,'' then key in the docket ID number identified in this
document.

What Information Is EPA Particularly Interested In?

    Pursuant to PRA section 3506(c)(2)(A), EPA specifically solicits
comments and information to enable it to:
    (i) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the Agency,
including whether the information will have practical utility;
    (ii) Evaluate the accuracy of the Agency's estimate of the burden
of the proposed collection of information, including the validity of
the methodology and assumptions used;
    (iii) Enhance the quality, utility, and clarity of the information
to be collected; and
    (iv) Minimize the burden of the collection of information on those
who are to respond, including through the use of appropriate automated
electronic, mechanical, or other technological collection techniques or
other forms of information technology (e.g., permitting electronic
submission of responses). In particular, EPA is requesting comments
from very small businesses (those that employ fewer than 25) on
examples of specific additional efforts that EPA could make to reduce
the paperwork burden for very small businesses affected by this
collection.

What Should I Consider When I Prepare My Comments for EPA?

    You may find the following suggestions helpful for preparing your
comments.
    1. Explain your views as clearly as possible and provide specific
examples.
    2. Describe any assumptions that you used.
    3. Provide copies of any technical information and/or data you used
that support your views.
    4. If you estimate potential burden or costs, explain how you
arrived at the estimate that you provide.
    5. Offer alternative ways to improve the collection activity.
    6. Make sure to submit your comments by the deadline identified
under DATES.
    7. To ensure proper receipt by EPA, be sure to identify the docket
ID number assigned to this action in the subject line on the first page
of your response. You may also provide the name, date, and Federal
Register citation.

What Information Collection Activity or ICR Does This Apply To?

    Affected entities: Entities potentially affected by this action are
all facilities required to have an operating permit under title V of
the Clean Air Act. See section 502(a) of the Clean Air Act (the Act),
which defines the sources required to obtain a title V permit. See also
40 CFR 70.2 and 71.2.
    Title: Compliance Assurance Monitoring Program (40 CFR Part 64).
    ICR numbers: EPA ICR No. 1663.07,
    OMB Control No.: 2060-0376.
    ICR status: This ICR is currently scheduled to expire on July 31,
2010. An Agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information, unless it displays
a currently valid OMB control number. The OMB control numbers for EPA's
regulations in title 40 of the CFR, after appearing in the Federal
Register when approved, are listed in 40 CFR part 9, are displayed
either by publication in the Federal Register or by other appropriate
means, such as on the related collection instrument or form, if
applicable. The display of OMB control numbers in certain EPA
regulations is consolidated in 40 CFR part 9.
    Abstract: The Act contains several provisions directing us to
require source owners to conduct monitoring to support certification as
to their status of compliance with applicable requirements. These
provisions are set forth in Section 504 and Section 114 of the Act.
Under section 504(c), each operating permit must ``set forth
inspection, entry, monitoring, compliance, certification, and reporting
requirements to assure compliance with the permit terms and
conditions.'' See also section 504(a) (each permit shall require
reporting of monitoring and such other conditions as are necessary to
assure compliance). Section 504(b) allows us to prescribe by rule,
methods and procedures for determining compliance recognizing that
continuous emissions monitoring systems need not be required if other
procedures or methods provide sufficiently reliable and timely
information for determining compliance. Section 114(a)(3) requires us
to promulgate rules for enhanced monitoring and compliance
certifications for major stationary sources, and provides authority for
such rules for other sources. Section 114(a)(1) of the Act provides
additional authority concerning monitoring, reporting, and record
keeping requirements. This section provides the Administrator with the
authority to require any owner or operator of a source to install and
operate monitoring systems and to record the resulting monitoring data.
We promulgated the Compliance Assurance Monitoring (CAM) rule, 40 CFR
part 64, on October 22, 1997 (62 FR 54900) pursuant to these
provisions.
    In accordance with section 114(c) and section 503(e), the
monitoring information source owners must submit must also be available
to the public, except under circumstances set forth in section 114(c)
of the Act. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9.
    We are soliciting comments to:
    (i) evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the Agency,
including whether the information will have practical utility;
    (ii) evaluate the accuracy of the Agency's estimate of the burden
of the proposed collection of information, including the validity of
the methodology and assumptions used;
    (iii) enhance the quality, utility, and clarity of the information
to be collected; and
    (iv) minimize the burden of the collection of information on those
who are to respond, including through the use of appropriate automated
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.

    Burden Statement: The annual public reporting and recordkeeping
burden for this collection of information is estimated to average 304
hours per response. Burden means the total time, effort, or financial
resources expended by persons to generate, maintain, retain, or
disclose or provide information to or for a Federal agency. This
includes the time needed to review instructions; develop, acquire,
install, and utilize technology and systems for the purposes of
collecting, validating, and verifying information, processing and
maintaining information, and disclosing and providing information;
adjust the existing ways to comply with any previously applicable
instructions and requirements which have subsequently changed; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information.
    The ICR provides a detailed explanation of the Agency's estimate,
which is only briefly summarized here. Based on the Agency's knowledge
of the number of title V permits issued since 1997 and the
implementation of part 64 through permit renewals, the expected impact
of the CAM program for the 3 years from October 1, 2010 until September
30, 2013 is about 7.4 million hours annually. The CAM rule will incur
an average annual cost of about $263.8 million in 2008 dollars. There
are no annualized capital and operation and maintenance (O&M) costs.
EPA assumes that any such equipment needed by sources to comply with
part 64 would be purchased as part of a monitoring equipment purchase.
Therefore, O&M costs for operating such capital equipment is not
separately estimated.
    The CAM program burden for source owners or operators means the
total time, effort, or financial resources expended by persons to
generate, maintain, retain, or disclose or provide monitoring
information to or for a Federal Agency. This includes the time needed
to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information. The CAM program
potentially affects about 24,000 pollutant-specific emissions units
nationwide. The annual burden for source owners or operators is about
7.4 million hours for these pollutant-specific emissions units.
    During the review period, permitting authorities will review CAM
rule submittals from source owners or operators whose permits have
already been issued and are renewing those permits as the 5-year permit
terms expire. Permitting authorities will also be interacting with the
source owners or operators in addressing the CAM in semi-annual
monitoring reports and reporting CAM data as necessary. We estimate the
annual CAM burden to permitting authorities to total about 65,000 hours
and about $3.5 million. Burden means the sum of the time, effort, or
financial resources expended by persons to generate, maintain, retain,
or disclose or provide information to or for a Federal agency.
    The ICR provides a detailed explanation of the Agency's estimate,
which is only briefly summarized here:
    Estimated total number of potential respondents: 24,000 pollutant
specific emissions units.
    Frequency of response: Semi-annual and annual reports, plus every 5
years at permit renewal.
    Estimated total annual burden hours: 7.4 million hours.
    Estimated average annual costs: $263.8 million. This includes
annual labor costs for sources and permitting authorities and no
capital or O&M costs.

Are There Changes in the Estimates From the Last Approval?

    There is an increase of 4.3 million hours in the total estimated
respondent annual burden compared with that identified in the ICR
currently approved by OMB. This increase reflects the significant
increase in number of respondents resulting from the implementation of
the rule through operating permit renewals.

What Is the Next Step in the Process for This ICR?

    EPA will consider the comments received and amend the ICR as
appropriate. The final ICR package will then be submitted to OMB for
review and approval pursuant to 5 CFR 1320.12. At that time, EPA will
issue another Federal Register notice pursuant to 5 CFR
1320.5(a)(1)(iv) to announce the submission of the ICR to OMB and the
opportunity to submit additional comments to OMB. If you have any
questions about this ICR or the approval process, please contact the
technical person listed under FOR FURTHER INFORMATION CONTACT.

    Dated: January 29, 2010.
Steve Fruh,
Acting Director, Sector Policies and Programs Division, Office of Air
Quality Planning and Standards.
[FR Doc. 2010-3683 Filed 2-23-10; 8:45 am]
BILLING CODE 6560-50-P